Monday, 8 October 2012

Oilmeal exports slump 64% in September

High price of soybean seed resulted into lesser crushing and availability of soybean meal for local as well as for the export

Dilip Kumar Jha / Mumbai Oct 05, 2012
Business Standard
India’s oilmeal exports declined 64% in September due to lower availability from domestic seed crushing mills and poor demand from the three leading destination markets i.e. Japan, Indonesia and Vietnam.

Data compiled by the Mumbai-based apex trade body the Solvent Extractors’ Association (SEA) showed that total oilmeal exports slumped to 143,990 tonnes in September this year as compared to 402,500 tonnes in the corresponding month of the previous year. Overall exports of the cattlefeed between April – September period, however, declined by a massive 24% to 16,03,065 tonnes as compared to 20,96,801 tonnes during the same period last year.

“High price of soybean seed resulted into lesser crushing and availability of soybean meal for local as well as for the export. Lack of buying by Iran and disparity in export of soybean meal due to high price in local market resulted into steep fall in its exports,” said B V Mehta, executive director of SEA.

While India’s largest oilmeal market – Japan – cut its imports by a massive 83% in the first half of the current fiscal at a mere 85,181 tonnes from a staggering 498,249 tonnes in the comparable period last year, Vietnam witnessed a 17.36% decline in oilmeal imports from India to 205,878 tonnes versus 249,123 tonnes in the period under consideration.

Exports to Indonesia also fell by 16% to 99,173 tonnes between April – September 2012 versus 118,149 tonnes in the same period last year. Dwindling European economy affected India’s oilmeal exports as consumers in that region lowered expenditure on animal feed. Consequently, overall exports to Europe and other regions fell by 37.14% to 31,326 tonnes in the first half of the current financial year from the level of 49,833 tonnes in the same period last year.

Apparently, average oilmeal prices have doubled in the last one year due to a substantial jump in oilseed prices by the government. Soybean meal price shot up to $668 a tonne in September this year as compared to $386 a tonne in the same month last year. Though, the price fell marginally from the average price of $760 a tonne in August, yet traders believe this price level very high. Hence, importers are abstaining from a fresh buying temporarily.

Similarly, rapeseed meal price shot up to $325 a tonne in September from $179 a tonne a year ago.

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