Rabi Oilseeds Production in India may fall short of Set Targets for 2014-15

The government of India has put a target of 111.70 lakh tons of oilseeds production from Rabi season for 2014-15 which seems hard to achieve as the oilseeds sown area under rabi season is 8.30% less as compared to last year. As per the latest government estimates, the sowing area under total oilseeds is at 76.91 lakh hectares as compared to 83.87 lakh hectares last year.

Keeping in mind the overall price situation in the Indian and world market, the supply of edible oils is comfortable to meet the consumption demand. Further the drastic fall in the crude oil has also added to the bearish undertone of the market.

However India is a net importer of edible oils to meet its domestic consumption demand, the current downside in oilseeds prices seems limited. However short term correction may continue for some more days. From March onward the oilseeds prices may start witnessing upside movement.