The Hindu Business Line : Ports congestion hits oilmeal exports

While the Kandla and Mundra ports have been clogged due to piling of nearly imported wheat and fertiliser, the congestion is also having an effect on exports of oilmeals, particularly soyameal.

"We could have a major problem on hand if no immediate solution is found to this. Crushing is set to peak this month and there will be a demand to ship soyameal early," said industry sources.

Soyameal exports

According to the sources, nearly four lakh tonnes of soyameal could have been shipped last month but the congestion affected shipments. Still, the Soyabean Processors Association of India said exports of soyameal in October increased to 2.9 lakh tonnes against 1.98 lakh tonnes a year ago.

For the current fiscal, soyameal exports till October totalled 17.24 lakh tonnes against 9.44 lakh tonnes a year ago. "We have urged the Centre to allocate a separate berth in Kandla to export soyameal," said Mr B.V. Mehta, Executive Director of Solvent Extractors Association of India.

"Kandla accounts for over 70 per cent of the soyameal exports from the country," he said. In October, 61 per cent of oilmeal shipments was from the Gujarat port. Industry sources said the delay has already resulted in premium for Indian soyameal declining. "We can look at ports such as Bedi but there are problems with barge," Mr Mehta said.

Bedi is a mid-sea port and the consignments have to be taken by barge before being shipped.

The barge capacity is 75 tonnes and it means more time to load the consignment. According to Mr Davish Jain, Chairman of Central Organisation for Oil Industry and Trade (COOIT), the reason for solvent extractors looking at Mundra or Kandla ports is that most of the units are in central or western parts of the country. "For us, to look at other ports means shelling out more for transport," he said. Still, some of the extractors are shifting their consignments to ports such as Visakhapatnam and Tuticorin.

"Some shipments are being diverted but problems do exist," said Mr Sandeep Bajoria, former COOIT chairman.

Shortage of railway wagons and labour has affected clearance of imported wheat at Kandla and Mundra ports.

Oilmeal exports

Meanwhile, the Solvent Extractors Association of India said on Wednesday that oilmeal exports from the country during April-October increased 31 per cent to 19.66 lakh tonnes.

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