The Hindu Business Line : Oilmeal exports rise on demand from S-E Asia

According to the Solvent Extractors Association of India (SEA), oilmeal exports from the country during April-October totalled 15 lakh tonnes compared with 13.58 lakh tonnes during the corresponding period a year ago.

"There is increased demand for Indian oilmeal, as there is better awareness in the global market about its quality. Moreover, the SEA took out a delegation to South-East Asian countries such as South Korea, Taiwan and Vietnam," said Mr B.V. Mehta, Executive Director, SEA.

Mr Rajesh Agrawal, Chairman, Soyabean Processors Association of India, told Business Line that nearly 8.5 lakh tonnes of soyameal had been contracted for exports up to January-February. The orders have been contracted at an average price of $226 a tonne free-alongside-ship.

According to Mr Agrawal, China and Japan have bought about one lakh tonnes each, while South Korea has contracted to buy 60,000-70,000 tonnes. "We have good orders from Vietnam, which has contracted 40,000 tonnes," he said, adding that some quantities had been sold to West Asia also.

Among other buyers are Indonesia and Taiwan. "Lots of small trade is also taking place. For instance, Pakistan has bought three rakes of 2,000 tonnes each last month,"' he said.

Mr Mehta said South Korea had turned a major buyer of soya and rapemeal. "The compound feed manufacturers in these nations are buying our oilmeal. This year, compound feed production is likely to increase by 8-10 per cent," he said.

Nearly 30 per cent of oilmeal is used as an ingredient in compound feed, which is used in animal husbandry and the poultry sector. According to SEA, exports had lagged in April and May due to lower crushing margin and production. Oilmeal exports have revived now with improvement in crushing margin and step-up in production.

Mr Mehta said castormeal exports are set for a record. "It has jumped to 1.25 lakh tonnes during April-October from 28,000 during the corresponding period due to demand from Korea and Taiwan," he said.

Castormeal is being used in the production of organic manure in South-East Asian countries. "There is increasing awareness of the utility of castormeal as an organic manure. We have begun to get demand even from France," Mr Mehta said, adding that Vietnam had emerged as a big buyer of rice bran extraction with orders close to 40,000 tonnes.

Mr Agrawal said good arrivals were sustaining crushing. "Weekly arrivals are around the usual 4-5 lakh bags," he said. Currently, prices too were reasonable at Rs 11,700-11,800 a tonne.

According to industry sources, India is gaining particularly in meeting immediate demand of the South-East Asian countries.

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