The Hindu Business Line : 8 lakh tonnes of soyameal contracted for exports

Scenario
Soyabean meal has been sold to Japan, South Korea, Vietnam, Taiwan and China.
Exporters are able to ship in small parcels to Far-East countries.

Chennai , Oct. 16

At least eight lakh tonnes of soyameal have been contracted for exports, mainly to Far-East countries. All the consignment will be from the new soyabean crop that has begun to arrive in the markets.

The soyabean meal have been sold at an average $200 free-alongside-ship (f.a.s) by exports, according to Mr Rajesh Agrawal, spokesman and coordinator, Soyabean Processors Association of India.

On Monday, soyabean meal was quoted at $202-206 f.a.s Kandla port.

Competitive prices

"We have been witnessing demand continuously for our soyameal. Buyers find our prices competitive that the meal from South American markets," Mr Agrawal said.

However, on Monday, South Korea bought two lots totalling 85,000 tonnes of soyameal with 30,000 tonnes being sourced from India through Cargill and the rest from South America through Bunge.

While the meal from South America was bought from Bunge at $241.48 a tonne, from India Cargill sold the consignment at $241.80.

According to Mr Agrawal, soyabean meal has been sold to Japan, South Korea, Vietnam, Taiwan and China.

With demand coming in from Far-Eastern nations particularly for compound feed, the industry expects the buoyancy in soyabean meal to continue during the current oil year that began this month.

However, it is not sure if it would equal last oil year's performance of exporting 41.83 lakh tonnes, a growth of 119 per cent over the previous year.

Shipments

Asked if the industry had begun to witness any growth in shipments to China, especially after Beijing cut 5 per cent duty on soyameal imports from India, Mr Agrawal said: "Not exactly. Shipments are taking place and we are not seeing any big movement."

Mr Agrawal said another factor in favour of Indian soyameal was that it was being shipped in containers and small parcels. "We are able to export in small parcels to the Far-Eastern destinations. It is a feasible option," he said.

Buying in small parcels from South America is not feasible in view of higher freight charges.

Also, according to trade sources, exporters are able to get containers at lower rates as these most of the times return empty to destinations such as Singapore.

Arrivals peak

Meanwhile, soyabean arrivals in various markets in the growing States have peaked. "Arrivals are 1-1/2 lakh to 2 lakh bags (of 90 kg) daily. Prices are quoting around Rs 12,000 a tonne," Mr Agrawal said.

Prices are workable for the solvent extracting units but they are expected to stabilise after Diwali. This is because the extraction units are on a buying spree to ensure they do not run out of stocks after Diwali.

"Markets will be closed for five days during Diwali," Mr Agrawal said.

Production

Production and quality of soyabean, going by arrivals, was good, he said.

SOPA has projected soyabean production at 71.49 lakh tonnes, up 10 lakh tonnes over last year. The Centre, on the other hand, has estimated it at 80 lakh tonnes, down 3.5 lakh tonnes from last year.

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