The Hindu Business Line : Asian demand revives soyameal exports

"Contracts have been signed this week for exports to Japan and South Korea," said Mr Rajesh Agrawal, Chairman, Soyabean Processors Association of India.

While Japan has placed orders for 30,000 tonnes, South Korea has bought 25,000 tonnes. "Sales have taken place to Seoul at $320 a tonne c&f; for Japan the price is around $332 c&f," he said.

Besides these two destinations, orders for small shipments have been won for exports to Indonesia, Pakistan and Bangladesh.

"About 5,000 tonnes of soyameal have been exported to Indonesia in containers. Bangladesh has bought 8,000-10,000 tonnes and Pakistan 10,000 tonnes," Mr Agrawal said.

Export orders for soyameal have resurfaced as buyers have to foot higher freight charges to get soyameal from the US or other South American countries. "Demand for compound feed has revived, leading in turn to purchases of soyameal," an industry source said.

Soyameal makes up 20-25 per cent of compound feed. Currently, f.o.b prices for soyameal have increased to $270-$272, up $12over last week.

"While soyameal prices are looking up, we are getting soyabean delivered at Rs 1,670 a quintal," Mr Agrawal said.

Soyabean prices, too, have increased marginally compared to last week but they have not flared up sharply as in the US markets. "Prices have shot up in the US market as the crop in South American countries such as Brazil and Argentina is lower," an analyst said.

With demand reviving for soyameal, the processors are bullish about the prospects.

"We are sure to hit the 30-lakh tonne target for soyameal export," Mr Agrawal said.

Hopes of higher exports are against shipments of 13.33 lakh tonnes (lt) last year. Coupled with groundnut meal exports, oilmeal shipments this fiscal are seen topping 35 lt.

Soyameal exporters have mainly cashed in on fall in the US crop. In fact, the trade is witnessing a unique year with both production and prices being higher.

Soyabean production has been estimate at 71 lt, up from 43 lt last year. Oilseed production, as such, is seen at a record 142.4 lt on beneficial monsoon, widespread rains and rise in acreage.

Asked about problem of freight, Mr Agrawal said there were no problems. "Exporters are keeping up their schedule since they had booked their cargoes at lower rates," he said.

"The freight to Far-East works to around $40 a tonne for ships that can carry 25,000 tonnes," he said.

The problems of railway wagon availability, which had affected movement of soyameal to ports, have also eased.

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