Mumbai, April 7 Hit by the global economic recession, oilmeals exports dipped 45 per cent to 13.52 lakh tonnes in the fourth quarter of the 2008-09 financial year, against 24.56 lakh tonnes during the same period a year ago.
Exports were down marginally by 0.38 per cent at 54.21 lakh tonnes during the review period against 54.42 lakh tonnes the year before. In March, the exports were down 60 per cent at 3,38,000 tonnes against 8,53,675 tonnes a year ago.
Minimal effect
Mr B.V. Mehta, Executive Director, Solvent Extractors’ Association of India, said: “About 25-30 per cent of the total exports which take place in the last quarter of financial year were affected by the global economic meltdown. The demand was just not there.”
However, he said, the fall in exports would have a minimal impact on companies such as Ruchi, Sanwaria Agro Oils or Gujarat Ambuja Exports as there was not much surplus left due to the sharp fall in oilseed output this season ending October.
Realisations up
Though the quantity of oilseed exports dipped, price realisations were up 17 per cent at Rs 8,341 crore against Rs 7,109 crore. Rupee depreciation against the dollar also helped better realisation.
Export in first two quarters jumped due to excellent demand and f.o.b realisation. However, in the third quarter it was stagnant, before plunging sharply in fourth quarter. The sharp decline was due to decrease in production of meat and poultry worldwide following financial crisis and pronounced slowdown in economic activity affecting consumer demand for livestock products.
Concerned over the fall in exports, the association has decided to step up promotional efforts, deputing a trade delegation in second half of May to South-East Asian countries such as Thailand, Cambodia, Vietnam, Philippines and Indonesia to maintain India’s share and develop new markets such as Cambodia.
Silver lining
Average international prices of soyabean meals fell 20 per cent in March compared with the peak reached in July 2008, while for rapeseed meal it was down 26 per cent, groundnut meal 25 per cent, rice bran extraction 23 per cent and castor seed extraction 56 per cent.
The only silver lining was the depreciation in rupee over last six months and 5 per cent duty relief through Vishesh Krishi and Gram Udyog Yojana (VKGUY) for soyabean meal and castorseed meal that helped the exporters to maintain the realisation despite the fall in quantity, said the association in a statement.
Oilmeal import by Vietnam from India for the fiscal was reported at 15.10 lakh tonnes against 17.08 lakh tonnes. Imports by Vietnam comprised 13.11 lakh tonnes of soyabean meal, 54,660 tonnes of rapeseed meal and entire quantity of 1.44 lakh tonnes of rice bran extraction.
Korean imports
South Korea reported import of 8.08 lakh tonnes (10.32 lakh tonnes), consisting of 3.68 lakh tonnes of rapeseed meal, 2.43 lakh tonnes of soybean meal and 1.95 lakh tonnes of castor seed meal.
Japan imports rose marginally to 8.06 lakh tonnes (7.49 lakh tonnes) while exports to West Asia doubled to 4.27 lakh tonnes (2.30 lakh tonnes).
Source : Business Line