The Hindu Business Line : Oilmeal exports at record on Q4 rebound

New Delhi, April 8 A rebound in oilmeal exports during the fourth quarter of 2007-08 fiscal helped their shipments to a record 54.42 lakh tonnes (lt) against 51.70 lt.

Data compiled by the Solvent Extractors Association of India show that during the last quarter, the shipments were up 23 per cent, thus helping the overall exports to increase five per cent. The exports had declined by five per cent in the first quarter, 17 per cent in the second and one per cent in the third.

More than the rise in volume, the foreign exchange earnings from the exports has been impressive. In fact, they have increased 65 per cent to Rs 7,110 crore during the last fiscal.

Oilseed output down

Exports during the first half of the last fiscal, especially, were down since oilseed production last season (November 2006-October 2007) was down. However, with the soyabean production rising to a record 94 lt, oilmeal exports got a boost.

Again, better f.o.b realisation helped exports fetch record earnings during the fiscal. For example, soyamal was quoted at $269 a tonne during April 2007 but by March 2008 it had increased to $407. Similarly, rapeseed meal realisation increased to $233 a tonne from $129, while that of groundnut meal was up at $320 from $220.

“The higher realisation helped overcome and nullify the impact of the depreciation of the the dollar against the rupee,” the extractors association said.

Oilmeal prices gained in the global market in the face of vegetable oil prices running to record highs. This was since crude oil prices soared and vegetable oils, especially palm oil and rapeseed oil, were diverted for making bio-fuel.

Export trend

A major factor in the rise in oilmeal exports was Vietnam. Oilmeal exports by the country was at a record 17.08 lt, including 14.45 lt of soyameal. In fact, Vietnam imported the entire 1.92 lt of rice bran extraction shipped out of the country.

South Korea was another major importer, buying 10.32 lt of oilmeal, including 4.6 lt of rapeseed meal and 3.11 lakh tonnes soyameal besides 2.55 lakh tonnes of castormeal.

Japan bought 7.49 lt of oilmeal of which 7.39 lt were soyameal.

Amidst the buoyant export trend, China cut its import from the country due to better crushing by its solvent units. However, it bought 1.43 lt of rapeseed meal, 1.50 lt of soyameal and 51,285 tonnes of groundnut meal.

Bird flu

The oilmeal exports were also helped by minimal or absence of bird flu incidences in the importing nations. Indian oilmeals, particularly soyameal, are bought for mixing in compound feeds that are used in feeding cattle and poultry.

On the other hand, products such as castormeal are being imported by countries such as Vietnam and South Korea for use as fertiliser.

Oilmeal exports have been witnessing an uptrend during the last few years mainly on the back of the industry taking out delegation to various countries and networking with key buyer associations there.

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