Agri Business

Lower crop, lack of MEIS to pull down soyameal exports, says trade body

Our Bureau Bengaluru | Updated on November 11, 2019

Indian soyameal is expensive in the world market Kamal Narang

India’s soyameal exports for the oil year 2019-20, starting October, may see a sharp decline on lower availability of the oilseed for crushing and higher prices, a trade body has said.

“We are expecting a severe decline in exports,” said DN Pathak, Executive Director, The Soybean Processors Association of India (SOPA).

Indian soyameal is expensive in the world market. In addition to a lower crop, the lack of clarity in continuation of the incentive under the MEIS scheme is hurting export order bookings, he added.

SOPA has pegged the soymeal exports for 2019-20 at 10 lakh tonnes, a sharp decline from the previous year’s 21.79 lakh tonnes.

SOPA, which has projected a 20 per cent dip in soybean output this year, seesa higher decline in soymeal exports due to these issues.

“They (the government) are neither giving it, nor withdrawing it or denying it. From August 1, the Government has stopped giving the 7 per cent MEIS incentive. We have written to every one, but there’s no response,” Pathak said.

“Indian soymeal is expensive by over $100 per tonne when compared to our competitors. The 7 per cent incentive, provided under MEIS scheme over the FOB value of the shipment, helped the exporters offset the higher price in the international market to some extent,” Pathak said.

Shipments of soymeal during October were sluggish and stood at 0.5 lakh tonnes as against 1.3 lakh tonnes in the corresponding period last year.

Largest buyer

Iran was the largest buyer of soyameal in October, purchasing about 21,605 tonnes, followed by Vietnam at 2,185 tonnes and Indonesia at 950 tonnes.

The trade association has projected a lower soyabean crop of 89.84 lakh tonnes this year as excess rains have hit the yields in the key producing States of Madhya Pradesh, Maharashtra and Rajasthan.

In the previous year, the soyabean production stood at 109.33 lakh tonnes.

Published on November 11, 2019

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