Oilseeds output projected to be 2.6% lower than last year at 23.3 million tonnes
Low domestic production has increased dependence on costly imports as local output meets about 40% of the domestic demand
Output of oilseeds is expected to be 23.39 million tonnes for (2021-22), which is 2.66% lower as compared to last year. The production of groundnut is estimated 8.25 million tonnes, which is 3.50% less than last year, Business Standard reported on Tuesday. Similarly, the output for soybean is expected to decline by 1.08% to an estimated 12.72 million tonnes. Also, due to the rise in prices in global markets and low supplies, prices of edible oils have been on fire in the last couple of months.
Adding to that low domestic production has increased dependence on costly imports as local output meets about 40% of the domestic demand.
According to CARE ratings, there may be a slight dip in prices of oilseeds due to the softening of global markets. However, after October prices will start rising again, with inflation will play an important role.
Kharif output may touch 150.5 mt
On the other hand, the picture for pulses looked slightly better, because the production of kharif pulses is estimated to be 8.74% more than last year and is expected to be 9.45 million tonnes. In the ongoing kharif season, India’s food grain production is likely to touch a record 150.50 million tonnes.
Tur, which is one of the biggest varieties of pulses grown during the kharif season, is estimated at 4.43 million tonnes, which is 3.50% higher as compared to the previous year.
During 2020-21, production of pulses declined by 6.65% between the first and fourth advanced estimates.
Other crops like coarse cereals is expected to fall to 34 million tonnes in 2021-22 as against 36.46 million tonnes in 2020-21, as per first advanced estimate. On the contrary, production of cotton is likely to record 36.22 million bales as compared to 35.38 million bales in the previous year. Jute and mesta production is also projected higher at 9.61 million bales as against 9.55 million bales in the previous year.
According to the first advance estimate of the 2021-22 (July-June) crop year, the production numbers were released.