The Soybean Processors Association of India (SOPA) has revised upwards the estimated export of soybean meal from 10 lakh tonnes to 18 lakh tonnes and the domestic use (feed) from 42 lakh tonnes to 46 lakh tonnes owing to favourable conditions for export and lower prices of soybean meal in India.
According to top officials of SOPA, the local prices are good and the feed industry has changed the formulations from 15 % to 22-25 % because prices are low. Therefore, domestic use ( feed) has been revised upwards by the association. This time there has been a bumper crop and prices in the domestic market are reasonable because of this.
According to the latest Supply & Disposal report of the Association, the carry over stock of soybean from last year is around 4.41 lakh tonnes while the total production is to the tune of 114.91 lakh tonnes, taking the total carry forward to 119.32 lakh tonnes. Of these, nearly 12 lakh tonnes has been retained for sowing, 1.50 lakh tonnes is meant for direct consumption, and some 90 lakh tonnes for crushing.
Significantly, the total carryover of soybean meal from the previous year is around 0.48 lakh tonnes and the total production is around 73.48 lakh tonnes.
While the 18 lakh tonnes is meant for export, domestic consumption of soybean meal ( food) is around 6 lakh tonnes while 46 lakh tonnes is meant for domestic consumption of feed.
According to Davish Jain, president, SOPA, some exports are happening to Pakistan although the LC is awaited and exports are also expected to Bangladesh. With the extension of the SAFTA (South Asia Free Trade Trade Area) agreement, India stands to gain a lion’s share of the export market in SAARC nations, Jain said.
India gets a 10% duty concession in Pakistan and 6% duty concession in Bangladesh which gives us the edge over other nations, he said. Although there is some resistance from local crushers here, this should not be a major obstacle since as part of the SAARC agreement, the notification should be implemented as per understanding.
India majorly exports to Japan, Western Europe and France. Jain said these countries are showing a preference towards India because we are non-GMO. Pakistan and Bangladesh are recent markets where India is exporting Soybean meal.
Earlier, a national-level delegation to represent soybean processors, farmers, exporters and brokers visited Japan, Vietnam, Indonesia, Philippines and Thailand to attract foreign buyers of soybean crop.
In the last couple of years, Indian exports had fallen drastically due to disparity in prices in the international market. This year the crop looks good and there is every possibility that we can enter the market with competitive prices and the added advantage of being non-genetically modified (GM) crops, SOPA officials said.
In the domestic market as well, soybean meal prices are reasonable and the feed industry has now begun to increase the volume of soybean meal since this is the best form of protein. Domestic prices are currently in the range of R23,000 to R24,000 per tonne.
Soybean production in the country is expected to touch 114.91 lakh tonnes in 2016 as against 70 lakh tonnes a year back because of good weather and rains, SOPA has said.
The total availability in the country in 2016 is expected to remain at 119.32 lakh tonnes including the carry over stock of 4.41 lakh tonnes from the previous year. Last year was an exceptionally bad year due to poor rains and weather. But this year everything was favourable which led to a rise in soybean production, senior officials of the association said.
Source: financialexpress.com