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LATEST NEWS UPDATES | Maharashtra farmers prefer Cotton to Soyabean this year by Jayashree Bhosale

Maharashtra farmers prefer Cotton to Soyabean this year by Jayashree Bhosale

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published Published on Apr 15, 2011   modified Modified on Apr 15, 2011

According Maharashtra agriculture department estimates, soyabean is no longer the prime favourite in India's second largest producer as farmers shift to cotton. That could be a setback for India's attempts to become more self-sufficient in cooking oil, which is the second largest import item after crude oil. "Due to good price realisation for cotton this year, area conversion from soya to cotton is most likely to happen. It is too early to predict numbers but we think it can be even more than 2 to 3 lakh hectare in Maharashtra," said Ruchi Soya Industries vice president P Kumar.

Ruchi Soya is one of leading soya oil manufacturers and also an exporter of soya meal. Sources in the Maharashtra agriculture department said the state government is likely to revise its kharif oilseeds target area downward by four lakh hectare. Soyabean is the most important oilseed crop in Maharashtra. The area under soyabean is likely to shift to cotton in the rainfed Marathawada region , where cotton and soyabean are the two important cash crops.

Though soyabean prices are good enough, cotton farmers got historic high prices for their produce in the current season. "The state government is likely to keep to the target of kharif oilseeds at 29.28 lakh ha as against 34.82 lakh ha last year. The actual area under soyabean in Maharashtra in 2010-11 kharif was 30.84 lakh ha, less by about 4 lakh ha than the targetted area," said the official of on condition of anonymity. But the Soyabean Processors Association of India (SOPA) estimates that the overall area under soyabean cultivation is likely to remain stable.

SOPA spokesperson Rajesh Agarwal said, "It is true that the area under soyabean may decline by about two to three lakh ha in Maharashtra. Yet, the all-India area under soyabean is likely to remain the same as some new area is expected to come under soyabean cultivation in the southern states of Tamil Nadu, Karnataka and Andhra Pradesh." The poultry industry in the southern states is the main consumer of soyabean. The soya industry, already facing the problem of 50% excess capacity, is now banking on good monsoon for better yields and better production. The total of imported and locally produced soyabean oil accounts for 20% of oil consumption in the country.


The Economic Times, 15 April, 2011, http://economictimes.indiatimes.com/markets/commodities/maharashtra-farmers-prefer-cotton-to-soyabean-this-year/articleshow/7986826.cms


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