New markets beckon soya meal exporters.

MUMBAI: Indian soya meal exporters are expected to make gains this year as Brazil and Argentina, major soya bean producing nations, have reported a fall in production.

Traders have found buyers from nations such as Japan, Indonesia and Vietnam who are ready to buy at Rs 28,000 per tonne. Soya meal is traded at Rs 25,300 per tonne at major ports.

Importers from Iran and the Gulf region are likely to buy big volumes from India this year after the US imposed a trade ban on the West Asian neighbour.

"Buyers from Iran have shown interest in buying a large volume of soya meal this year as they can't import from the US," an Indore-based trader said. Traders believe prices are expected to go up as demand from various countries is going up significantly.

"Demand for soya meal from Iran has been pushing up the bean market. However, lower rapeseed/ mustard production will also play a big role in firming up the prices," said B V Mehta, executive director of Solvent Extractors Association of India (SEAI).

India shipped 4,61,892 tonne of soya meal in March, up 12.69% from 4,09,882 tonne in March 2010. During FY12, total exports stood at 39,14,683 tonne as against 38,45,736 tonne in FY11.

Exports in the last six months have fallen to 27,85,831 tonne against previous year's 29,97,847 tonne due to lower arrivals in the physical market.

"India's rapeseed/mustard output is expected to fall to 6.27 million tonne this year against 6.85 MT last year," an SEAI official said. Soya meal is primarily used as a protein source in animal feed. A small proportion of the meal is used to make defatted soy flour, soy protein concentrates and isolates.

Iran's additional demand may boost producers' confidence in the crop and processing facilities for next season. The soya bean April futures contract on NCDEX has risen to Rs 3,000 per quintal from Rs 2,500 quintal in January.

Source : economictimes.indiatimes.com