New Delhi, May 27 (PTI): India's oilseeds production is estimated to increase by eight per cent to 32.2 million tonnes in 2007-08 against 29.7 million tonnes in the previous year, the US Department of Agriculture has said in a report.

"Indian oilseed production for 2007-08 is forecast at 32 million tonnes, assuming normal climatic conditions and higher prices on account of lower production in 2006-07," USDA said.

Soyabean, rapeseed, mustard, groundnut, cottonseed, copra and sunflower are used in calculating total oilseed output.

Soyabean area is projected to increase with expansion in the area under coverage expected in Maharashtra and potential for new area in Punjab, Haryana and Jharkhand, it said.

"Nevertheless, the preference for planting cotton over groundnut is expected to continue in the major growing state of Gujarat," it added.

Mustard crop production is forecast to increase to seven million tonnes in 2007-08 due to higher mustard prices in the current season coupled with expected lower carrying stocks.

Soyabean, mustard and groundnut account for more than 80 per cent of total oilseeds production in India, USDA said.

"The rate of growth of the minimum support price for oilseeds has not been parallel to commodities like wheat and rice," the department noted.

Farmers feel there was lack of government initiatives in supporting oilseed output and thus a shift in area under coverage from oilseeds to grain crops was seen in the recent Rabi sowing season, USDA said.