Oilmeal Exports Surge on better Seed Availability.

New Delhi: Oilmeal exports rose by more than 53% in September to 3.54 lakh tonne as compared to the same month last year largely because of increase in oilseed availability for crushing. Oilseed supplies rose last month as farmers rushed to liquidate their stocks over fears of bumper production in 2010-2011.

Of the total oilmeal exports, soyabean meal exports were to the tune of more than 2.9 lakh tonne while rest comprised of rapeseed meal and groundnut meal. The country had exported 2.31 lakh tonne oilmeal in September 2009.

“From last two months due to expectation of a better oilseed output, farmers have been releasing their stocks for processing,” BV Mehta, executive director, Solvent Extractors’ Association of India (SEA) said.

Less availability of oilseed had hit crushing in the first quarter of the current financial year resulting in more than 13% fall in oilmeal exports to 5.36 lakh tonne .

SEA said since July exports have been rising as shipments rose 39% and 14% in July and August to 2.41 lakh tonne and 2.44 lakh tonne respectively, over the corresponding months last fiscal.

However, with expectation of a bumper 10 million tonne of soybean crop, domestic prices are expected to remain stable next year.

“Due to lower soyabean production last year, soyabean meal production rose as high as Rs 19,000 per tonne in October, which should not be the case this year,” Ricky Thaper, treasurer, Poultry Federation of India, told FE. Soymeal is an important ingredient of feedmeal.

Improvement in oilmeal exports in the second quarter of current fiscal has not only covered the shortfall in first quarter, but has also helped the country record an overall growth of 12% for the first half, to 1.37 million tonne more than 1.23 million tonne during same period last fiscal.

According to the Soybean Processors Association of India, Japan imported 3.7 lakh tonne of soyabean meal from India, Vietnam and South Korea imported 1.4 lakh tonne and 7,812 tonne respectively.

Mehta said SEA expects growth momentum in oilmeal exports to continue, though October is traditionally a lean month for oilseed crushing.

Source : financialexpress.com