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The current uptrend in export shipments of soyameal, at the beginning of the season, has set an optimistic tone for exporters from India.
Aided by a favourable currency trend and lower domestic prices, Indian soyameal exports are set to make a comeback in the world market after two years of tepidity.
According to the latest export data shared by the Soyabean Processors Association of India (SOPA), soyameal (HS Code 2304) exports in November jumped by 104 per cent to 61,003 tonnes compared to 29,801 tonnes in the same month last year.
In the current oil year (October 2016-September 2017), total exports in the first two months totalled 80,142 tonnes (71,905 tonnes), showing an increase of 11.45 per cent.
Higher export hopes“This is just a start and we will see better volumes by the end of December. In the last month, supplies were subdued and the crushing activities were not in full swing. But now, it is getting normal and we expect about 200,000 tonnes of soyameal exports by January and more than one million tonnes of exports by March 2017 if prices remain in line," said Davish Jain, Chairman, SOPA.
Currency factorThe recent currency decline means better dollar realisations for the trade, thereby making it competitive and more effective in the international market. Trade sources estimate robust exports this year as compared to the last two years.
Indian soyameal exports had to suffer due to higher domestic prices.
This year, soyabean production is estimated at around 14.2-15 million tonnes, which is higher than the targeted 13.6 million tonnes.
The prices are seen under control mainly due to higher availability of seeds rather than the domestic requirement.
Notably, soyameal exports were reported at 3.47 million tonnes during the 2012-13 marketing year (October-September).
Subsequently, soyameal exports from India fell due to farmers reportedly hoarding the stocks, thereby affecting crushing activity.
This led domestic prices higher and out of parity with prices on the global market.
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