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India's soybean production is projected to rise by 6% to 125.8 lakh tonnes for the 2024 kharif season, driven by higher yields, according to the Soybean Processors Association of India (SOPA). The estimated yield has increased to 1,063 kg per hectare from 1,002 kg last year, aided by favorable weather and farming practices. Madhya Pradesh, Maharashtra, and Rajasthan, the top soybean-producing states, showed production increases despite some declines in acreage. The total area under soybean cultivation is estimated at 118.318 lakh hectares, lower than the government’s figure of 127.138 lakh hectares, due to intercropping in Maharashtra and a shift to corn in Madhya Pradesh.

Key Highlights

# India's soybean production is expected to grow by 6% this year.

# Estimated yield is higher at 1,063 kg per hectare, up from 1,002 kg.

# SOPA’s survey covered 5,021 km across major soybean-growing states.

# Total soybean acreage is lower at 118.318 lakh hectares versus government estimates.

# Shifts in acreage were observed due to intercropping and alternative crops.

Soybean prices in India have seen mixed trends recently, with anticipation of a 6% increase in production for the 2024 kharif season. According to the Soybean Processors Association of India (SOPA), output is projected to reach 125.8 lakh tonnes, up from 118.74 lakh tonnes last year. The higher production estimates are attributed to favorable weather conditions and agricultural practices, which have led to an improvement in yield from 1,002 kg per hectare last year to 1,063 kg per hectare. This trend is likely to exert downward pressure on prices, especially as the harvest progresses.

The price outlook is supported by a slight dip in soybean acreage. SOPA’s survey indicates a total planted area of 118.318 lakh hectares, which is significantly lower than the government’s estimate of 127.138 lakh hectares. The reduced acreage results from intercropping in Maharashtra and a shift towards corn in Madhya Pradesh. As a result, prices could see some support if demand for soybean remains robust amidst the lower-than-expected planting.

Other news influencing the soybean market includes a projected rise in production in key states. In Madhya Pradesh, the output is expected to increase to 55.39 lakh tonnes, while Maharashtra's production is set to grow to 50.16 lakh tonnes. In Rajasthan, production is estimated to be 10.52 lakh tonnes, with a marginal increase in yield. These factors are likely to shape the price movement in the near term.

Finally

The estimated 6% increase in soybean output may pressure prices downward, but lower acreage and strong demand could support prices in the upcoming season.

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