The Hindu Business Line : Soyabean meal exports likely to rise 10-15%

Advantage India
The country is likely to produce 15% higher than last year’s 7.6 mt
It gains from both proximity and quality (3-4% higher protein content)

Gargi Shah

Mumbai, Sept. 9 Higher freight cost and expected lower production of soyabean in the US and China may keep the Indian soyameal exports at an advantage.

Exports of soyabean meal are expected to be higher by 10-15 per cent with projections of higher crop production, said Mr Davish Jain, Managing Director of Prestige Group of Industries, one of the leading soyabean processors.

Output estimates

India is expected to produce 15 per cent higher than 7.6 million tonnes (mt) produced last year.

China is projected to produce 14.5 mt compared with 16.2 mt while the US is expected to produce 71.5 mt compared with 86 mt last year.

The world soyabean production is projected to come in at 222 mt down from 236 mt of last year.

Indian soyameal prices are ruling at $300 per tonne (f.o.b.) at west coast of India. Argentina meal is at ruling at $235 per tonne (f.o.b.).

Last year, Indian soyameal prices ranged from $180 to $250 escalating from the beginning of the season.

The landed cost of soyabean meal to South Asian countries from India is $40 per tonne higher compared to $100 from Argentina due to higher freight cost.

India not only derives benefit due to proximity but also Indian quality contains 3-4 per cent higher protein, said Mr Jain, adding that there is no dearth of market for Indian soyameal.

Good demand

Despite a significant decline in meal exports in the past five months, good demand for soyabean meal is seen from the buoyant Chinese market as it has a benefit of $50 per tonne on direct import of meal against import of soyabean seeds, he added. Soyabean consists of 82 per cent meal and 18 per cent oil.

Exports of meal for August were reported at 1.22 lakh tonnes down by half from 2.54 lakh tonnes during the same period last year. Overall imports for the past five months have been reported 18 per cent lower at 10.79 lakh tonnes compared with 13.09 lakh tonnes during same period last year.

Imports decline

Decline in imports has been due to the lean season, said Mr Jain. Last year, imports were higher on account of poor domestic demand, he added.

Soyabean meal exports for April to August were lower at 5.38 lakh tonnes from 7.96 lakh tonnes in the same period of last year. Generally, Indian domestic demand for soyameal is 2 mt while the country exports around 3.5 mt.

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