Oilmeal exports down in April-September as soya meal turns dearer

The Solvent Extractors’ Association of India has just compiled the export data for export of oil meals for the month of September 2012. The export of oil meals during September 2012 is reported at 143,990 tonnes compared to 402,500 tonnes in September 2011 i.e. down by 64%. The total export of oil meals during April to September 2012 has reduced and reported at 1,603,065 tonnes compared to 2,096,801 tonnes during the same period of last year i.e. down by 24%. High price of soybean seed resulted into lesser crushing and availability of soybean meal for local as well as for the export. Lack of buying by Iran and disparity in export of soybean meal due to high price in local market resulted into steep fall in its exports. The slump was largely due to a 97 per cent drop in soya meal shipments and a 63 per cent decline in castor seed extracts.

Edible oil extractors had cut down production due to high soya bean prices. This has resulted in lower soya bean meal availability and pushed up prices in the domestic markets. With higher realization in domestic markets, there was very little interest on exports of soya meal extracts. However, the export of rice bran extracts increased by 48 per cent in September to 23,400 tonnes.

Lack of buying interest by traders in Iran and other countries also pulled down exports in September, said a press release issued on Friday by Solvent Extractors’ Association of India.Interestingly, Iran has emerged as the largest buyer of Indian soya meal extracts in the first six months of the current fiscal accounting for more than half of Indian exports. Iran imported 4.4 lakh tonnes of the total soya meal exports of 8.22 lakh tonnes in the April-September period. The recent bilateral payment mechanism that allows importers in Iran to make payments in Indian rupees has aided the soya meal shipments.

For the April-September period, Iran imported a total of 4.57 lakh tonnes of Indian oil meals compared to 1.5 lakh tonnes in the corresponding period last year. The drop in export demand pulled down soya meal prices to $668 a tonnes in September against $760 realized in August.

Rapeseed meal was also quoted lower at $325 a tonnes against $343 a tonnes in August. The appreciation in value of rupee against dollar to Rs 54.35 in September against Rs 55.49 in August also discouraged exports.

Demand from South Korea was down seven per cent at 63,734 tonnes (68,540 tonnes) in September. However, South Korea has replaced Japan as the largest buyer of Indian oil meal extracts in the first half of the current fiscal. South Korea imported a total of 4.59 lakh tonnes of oil meal extracts against 3.38 lakh tonnes in the corresponding period last year.

Japan, which had imported close to five lakh tonnes of Indian oil meals in first half of 2011-12, bought only 85,181 tonnes so far this year.

Rajesh Agarwal, spokesperson for Soya bean Processors Association of India, attributed the slump in exports to high prices. Buyers had preferred to wait-and-watch the prices mainly due to the concern over output in the US, he said.

During September, Thailand more than halved its imports to 17,330 tonnes from 36,032 tonnes, while that of Indonesia fell 75 per cent to 2,580 tonnes from 10,228 tonnes. Vietnam was the only country which increased its order to 40,100 tonnes from 27,924 tonnes.