by PressIndia harvested a record rapeseed crop
Despite record rapeseed harvest, oil production declines
India has harvested a record rapeseed crop, but its processing will be reduced in the coming months. The fact is that local farmers do not intend to sell their products, they hold them back, hoping for a further increase in value.
This position of local producers can cause serious difficulties. Reduced sales of rapeseed exacerbate the already difficult situation with the decline in sunflower oil exports. India is the world’s largest buyer of edible oils, and the country will most likely have to increase its purchases of palm and soybean oils in the near future.
Last spring the cost of 100 kg of rapeseed was 6 thousand rupees when farmers began to deliver to the market the harvest of the previous season. In September, prices rose to a record high of 8,813 rupees, the rise in price forced farmers to plant more rapeseed. The weather was favorable, with high humidity levels contributing to a record rapeseed harvest of 11 million tons. This figure exceeded last season’s production by 28%.
The Indian market was replenished with offers from farmers in March and April, but the situation is different in the current period. Experts consider the probability that local producers will supply their products to the market in small batches throughout the year.
Last month, companies in India processed more than 1.6 million tons of rapeseed. Despite the high figures, experts warn that in the near future production volumes may decrease. At the same time, the demand for rapeseed oil continues to grow against the decrease in the export of sunflower oil.
90% of sunflower oil deliveries to India are made by European exporters, but sales are now frozen as a result of serious geopolitical conflict. Palm oil imports come from Indonesia and Malaysia, while soybean oil enters the country from Argentina and Brazil.
Six months ago rapeseed oil was trading at a premium that was 35% higher than palm, soybean, and sunflower oils. Now, however, prices have practically settled, and the cost of products has leveled off.
Analysts estimate that imports of vegetable oils for India could be more than 1 million tons per month. The fact is that stocks of rapeseed oil may be limited, despite the large volume of production.
As for other crops, India is expecting more than 316 million tons of grain, and last season’s harvest was almost 311 million tons. Farmers plan to harvest about 111 million tons of wheat, and rice — almost 128 million tons. Oilseeds production volumes are expected to be more than 37 million tons.