India 2018-19 soybean area seen up 10% at 11.5 mln ha

With monsoon expected to be normal this year and returns in soybean seen better, acreage of the oilseed is likely to rise 10% on year to around 11.5 mln ha in the 2018-19 (Jul-Jun) kharif season. At present, prices of soybean are around 20% above minimum support price in key markets in the country. It will encourage farmers to sow more soybean this year. The official’s sowing projection was the highest among the 13 respondents at 14.0-15.0 mln ha for 2018-19, against 11.0 mln ha estimated this year. Farmers had switched to other crops for better returns in 2017-18 and in next kharif they are most likely to come back to soybean. Growers in Madhya Pradesh are also expected to switch to soybean from jowar and minor grains like kodo and kutki. Meanwhile, prices of most kharif crops are ruling below their minimum support price in key markets that would further encourage farmers to opt for soybean.