The Hindu Business Line : 15 lakh t soyameal contracted for exports

AT least 15 lakh tonnes of soyameal have been contracted for exports with the delivery schedule extending up to March. However, prices for these export contracts have declined.

"Soyameal exports are doing well and around 15 lakh tonnes have been contracted. These are for delivery till March. On Thursday, South Korea bought a consignment for $208.50 a tonne c&f," said Mr Rajesh Agrawal, Chairman, Soyabean Processors Association of India (Sopa).

The rate at which the export contract of 30,000 tonnes for South Korea has been signed is a far cry from $226 a tonne free-alongside-ship (f.a.s) in August/early September.

"Global prices have witnessed a fall and therefore, rates for our meal have also declined," industry sources said.

Currently, soyameal prices have declined to $183-185 (Rs 8,300-8,400) a tonne f.a.s. Prices for soyameal had ruled at least $10 higher last month and in October, they were just above $200.

"Brazil, Argentina and the US have reported a good soyabean crop," the sources said.

According to Mr Agrawal, the Indian prices are $10-15 a tonne c&f lower than the prices offered by other origins such as the US and Brazil. India is able to offer its meal at competitive rates to the South-East Asian region due to lower freight rates. Also, for some of the countries in the region it makes sense to buy in small quantities, especially when the bird flu scare is threatening to affect consumption.

Indian oilmeals are mainly used in compound feed that is fed to cattle and poultry. Oilmeals make up nearly 30 per cent of the ingredients in the compound feed.

The declining rates of the meal have been the main reason for China to cancel over 50,000 tonnes. "China has never been our main buyer," Mr Agrawal said.

"South Korea, Japan, Indonesia, Taiwan, Thailand and Vietnam have bought our soyameal," he said.

Japan, in particular, has bought more soyameal this year. "Japan has bought about 2.5 lakh tonnes of the meal so far. They are buying it because our crop is non-GM and also because our quality is good," Mr Agrawal said.

According to the Solvent Extractors Association of India, South-East Asian nations are buying Indian oilmeals more after a delegation toured those countries.

These nations are also buying rapemeal and castormeal, which is now finding good use as organic fertiliser in Thailand.

However, fall in oil prices and availability of beans are two factors worrying soyabean processors. "The oil prices are low as also bean arrivals. It is affecting our profitability," Mr Agrawal said.

Currently, refined soyabean oil is quoted at Rs 337-388 for 10 kg, down Rs 10 from the same period a month ago.

Soyameal exports have been the main driver of recovery oilmeal shipments from the country since September. During April-September, oilmeal exports were down by nine per cent compared with the same period a year ago. Exports had declined mainly during the first quarter of the current fiscal.

For the April-November period, oilmeal exports registered a 16 per cent rise to 18.22 lakh tonnes (15.74 lakh tonnes) with the shipments increasing 49 per cent in November. Of this, soyameal accounts for 11.48 lakh tonnes (9.82 lakh tonnes).

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