However India is likely to witness a decline in oilseeds cultivation with the current low prices fuelling the inclination to switch over to other crops.

According to a report by Oilworld, Germany- based journal, in the USA the oilseed area will be up sharply by 2.1 million hectares or 6 per cent. As against this, EU-15 has witnessed stagnation with moderate increase of 0.3 million hectares each in East Europe and ex-USSR, 0.2 million hectares in Canada, 0.3 million hectares in Indonesia and 0.1 million hectares in Malaysia. The area in China is expected to be slightly up by 0.2 million hectares or less than one per cent.

World production of 10 per cent oilseeds is tentatively projected at 301 million tonnes up by 11.3 per cent in the season1999-2000. World production of soyabeans is forecast to rise by 4.7 million tonnes to a new record of 160.7 million tonnes. While all other oilseeds will be up by 6.6 million tonnes to a record of 140.1 million tonnes.

The biggest increase will occur in the USA. This is on assumption that normal to favourable weather will prevail in the months of July and August and that harvesting can be made without above-average losses.

In the current forecast, US oilseed output is expected at almost 90 million tonnes up by 6.4 million tonnes on top of last year's record.

US production of canola, sunflowerseed, linseed and groundnuts in 1999 is apparently falling short of earlier expectations, whereas official indications of higher than expected cotton plantings could boost US cottonseed production to a 3-year high of 6.35 million tonnes.

Moreover despite the already excessive soybean supply situation this season, US farmers have continued to expand soyabean plantings, owing to the income protection provided by theUS loan system. The soyabean loan rate of $5.26 per bushel is considered comparatively more attractive than the corn loan rate of $ 1.89.