Oilmeal exports turned the corner in September, increasing 19 per cent compared with the same period a year ago.
According to the Solvent Extractors’ Association of India, total oilmeal exports in September were 2.31 lakh tonnes (lt) against 1.93 lt. The revival comes after the shipments had witnessed over 50 per cent drop every month since the beginning of this fiscal.
Soyameal exports helped change the trend. In September, soyameal shipments more than doubled to 1.72 lt (0.68 lt).
“Those who were holding on to soyabean stocks earlier have been bringing them out in the last two months after our crop was projected to be lower, while the crops in the US, Argentina and Brazil were estimated to be higher. Sensing that the prices will be under pressure in the months to come, farmers thought it fit to bring out their holdover stocks,” said Mr B.V. Mehta, Executive Director of the Solvent Extractors’ Association of India.
Indian soyabean crop is estimated to be lower at 97 lt against 108 lt last year because of erratic monsoon. On the other hand, soyabean coverage in the US is projected at a record level.
The lower projection is one of the reasons why soyabean prices have firmed up to Rs 20,250-20,500 a tonne this week against Rs 19,050-19,100 a tonne last week.
Other exports
On the other hand, exports of rapemeal were down by over half to 0.45 lt (1.02 lt), while groundnut meal exports remain grounded, as also rice bran extraction. Sunflower meal exports, which resumed in June this year after more than a year’s gap, totalled 251 tonnes.
Castormeal exports were a tad lower at 0.13 lt (0.17 lt) during the period.
Overall exports during the first half of this fiscal have been dismal. Oilmeal exports during April-September dropped 51 per cent to 12.33 lt against 25.29 lt during the year-ago period.
The lower exports have been attributed to economic slowdown, especially owing to lower consumption of meat and poultry products. Oilmeals are used in compound feed for cattle and poultry. In view of the lower consumption, growth in cattle and poultry production was hit and that, in turn, hurt oilmeal offtake.
Soyameal exports dropped 62 per cent to 6.44 lt, while that of rapeseed slit to 4.62 lt (6.04 lt). Shipments of rest of the meals, too, showed a similar trend.
Fall in prices
The turnaround in exports can also been attributed to a fall in the prices. For example, the average price of soyameal exported in September dropped to $392 (Rs 18,400) a tonne against $430 (Rs 20,200) in August. Prices have dropped further this month to $373 (Rs 17,500).
Similarly, rapeseed meal prices dropped to $216 ($233). Currently, it is quoted at $213.
Among the importing nations, Vietnam continues to be the major buyer (3.28 lt), followed by South Korea (1.82 lt). China, too, was a major buyer, mopping up 1.50 lt of rapeseed meal of the total 1.70 lt oilmeals it imported during the first half of the fiscal.
Source : Business Line