Following economic sanctions by the US, Iran has turned to India for its soymeal imports. Per the latest data, exports to Iran registered a phenomenal growth from about 23,000 tonnes last year to about 3 lakh tonnes between April and December 2018.

“The Iranian market has opened up for Indian soybean meal. From April to December 2018, about 3 lakh tonnes of soybean meal shipped against last year’s 23,000 tonnes. The favourable factor is rupee transactions for trade with Iran,” said B V Mehta, executive director, Solvent Extractors’ Association of India (SEA).

Notably, Iran has revised its payment mechanism for trading partners such as India, and accepts payments in rupees as well as uses the same fund to pay to India for its imports.

Before the economic sanctions by the US, most of the Iranian soymeal demand was met through imports from the West, and from Brazil.

According to SEA data, Iran emerged as the third top destination for Indian oilmeals, after South Korea at 5.71 lakh tonnes and Vietnam at 4.22 lakh tonnes. Overall soymeal exports stood at 9.94 lakh tonnes for the period under review as against 9.37 lakh tonnes in the same period last year.

bl10JanOilmealscol
 

Overall oilmeal exports from April to December 2018 were reported at 2,387,028 tonnes compared to 2,246,989 tonnes in the same period last year, rising 6 per cent on a year-on-year basis.

Export of rapeseed meal surged to 821,777 (461,937) tonnes in the first nine months, supported by exports to South Korea, Vietnam and Thailand.

Mehta added that it will take a longer time to capitalise on the China market, though the trade was banking on it following Sino-US tensions. “The export of rapeseed meal and soybean meal to China is unlikely to resume during the current financial year as the procedure for registration with China is too cumbersome, lengthy and time consuming,” said Mehta.

Related Topics
comment COMMENT NOW