Friday February 25 NEW DELHI (Reuters) - Oilseed output in India, theworld's largest edible oil importer, is likely to surpass the previousyear's record production of 25.1 million tonnes, an annual report card ofthe economy said on Friday.

The country's winter oilseed production in 2004/05 (Oct-Sept) is estimatedat 15.4 million tonnes compared with 15 million tonnes a year ago, thesurvey said.

"The current summer acreage under oilseeds exceeds last year's sown area.As a result, the production of oilseeds in 2004/05 is expected to exceedlast year's record level," it said.

The farm ministry had in January estimated the 2004/05 oilseeds output at24.8 million tonnes.

The global vegetable oil industry watches Indian oilseed output estimatesclosely as the country's production impacts edible oil imports, mainlyfrom Malaysia, Indonesia, Brazil and Argentina.

The Indian oilseed trade body said the government's forecast was on thehigher side.

"Our estimate is lower by about 2 million tonnes from last year's 25.1million tonnes," Sandeep Bajoria, chairman of Central Organisation of OilIndustry and Trade, told Reuters.

Traders said the government needs to do more to lift oilseed production."We need better seeds and good irrigation facilities to boost output," aNew Delhi-based oilseed trader said.

India's average oilseed output is 1,100 kg per hectare compared with theworld average of 2,000 kg, traders said.

India grows mainly soybean and groundnut in the winter season and rapeseedand groundnut in the summer season. Winter crops are sown in June andharvesting begins in September, while summer crops are grown betweenNovember and March.

India also grows sunflower, linseeds, safflower and sesameseed in smalleramounts.

The survey said the big global oilseed crop, along with a forecast bumperdomestic oilseed production, would keep vegetable oil prices at a moderatelevel in the coming months.

Soybean prodiction in leading world producers was likely to hit recordlevels and palm output has been gradually rising.

India, which imports some 40 percent of its annual needs of 11 milliontonnes of edible oil, is the world's fourth-largest vegetable oilproducer.

The country buys palm oil from Malaysia and Indonesia and soy oil fromBrazil and Argentina.

According to industry estimates, India is expected to buy 4.5 milliontonnes of vegetable oil this year ending in October, against earlierestimates of 5 million tonnes, because of the good summer crop.

India imported 4.4 million tonnes of edible oil in 2003/04.