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August 7, 2009

Indian Oilmeal Exports fall by 63 per cent

India's oilmeal exports fell by 63 per cent year-on-year due to the impact of the global economic recession and non-availability of adequate meal. Exports during the four months ended June 30, 2009 were placed at 7.6 lakh tonnes against 19 lakh tonnes (1.9 million tonnes) during the same period a year-ago.

According to Solvent Extractors’ Association of India, total exports during the month reduced to 173,329 tonnes as compared to 474,590 tonnes in the corresponding month last year.

In the first four months of the current financial year, cattle feed shipments slumped 59 per cent to 787,857 tonnes as compared to 1,908,396 tonnes in the same period last year. India’s poor performance can be attributed to worsening demand in Southeast Asian countries as they were the major importers of Indian meal.

Meanwhile, domestic demand has improved significantly, giving no reason as to why producers would opt for exports when realisation in the local market was almost on a par with exports. Oilmeal exports supported better realisation for local farmers. The export market of oilmeal has developed after great efforts in many years and India was now enjoying the reputation of a dependable supplier.

During the period between April and July 2009, China bought 137,252 tonnes of oilmeals, mainly consisting of rapeseed meal of 136,592 tonnes and a small quantity of soybean meal.

However, exports to Vietnam steeply reduced to 238,232 tonnes from 511,401 tonnes in April-July 2008. Similarly, exports to South Korea, Japan, Indonesia and Thailand have also reduced due to reduction in consumption. In case of Japan, it stood at 84,493 tonne from 2.2 lakh tonnes, while it was 1.1 lakh tonnes from 2.9 lakh tonnes in case of South Korea. Exports to Indonesia for the four-month period were placed at 65,820 tonne as against 1.5 lakh tonnes in 2008.

Traders and analysts are now hoping that the kharif soyabean crop is robust to ensure that exports bounce back.

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