Millers to Govt: Push export of groundnut cake to tackle oilseed glut

Encouraging exports of groundnut meal with incentives along the lines given to other oilmeal will help dispose the heaps of groundnut stored in Gujarat’s warehouses, according to oil millers. .

The groundnut meal, a product left after oil is extracted from the oilseed, is a rich source of protein for cattle feed and also for human consumption. But for about a decade, groundnut meal export was not a focus area as relatively small quantity that was sufficient for the domestic market.

For the fiscal year 2017-18, India exported soybean meal worth 11.87 lakh tonnes (lt), while rapeseed meal exports stood at 6.63 lt, and groundnut meal at 6,841 tonnes. The other oilmeals such as ricebran extraction exports stood at 5.94 lt, and castor seed meal 5.72 lt.

"Now we are sitting on about 20 lt of groundnut stocks. Considering 50 per cent oil meal output, we are looking at about 10 lt of meal . This can only be consumed if the exports are incentivised as is the case with other oilseed meal," according to Samir Shah, President, Saurashtra Oil Mills Association (SOMA).

SOMA has also raised their demand with the Union Commerce Ministry for groundnut meal export incentives. There is a good demand of high-protein meal in the European and other Western markets.

Prices drop

But prices have dropped in the domestic market because of high production. Two years ago groundnut meal prices hovered at ₹30,000-33,000 per tonne, and are now at ₹19,000-22,000 now. There is no incentive for groundnut oil meal exports, whereas other oilmeals are getting 7 per cent export incentive such as duty drawback. , according to Shah.

"Groundnut seed is rich in protein. On average, from each quintal of groundnut, you get roughly about 30-35 kg oil and 50 kg meal. There is good demand for de-oiled cake. But we are unable to get the benefit of the overseas market therefore we see most of the oil cake being consumed locally," said Mukesh Nathwani of Gulab-brand of groundnut oil.

"The local consumption of the oil cake has gradually increased in the country. Also, we see good quality oilcake being used for protein supplements powders," added Nathwani.

Gujarat, the largest producer of the oilseed, witnessed bumper groundnut crop at 32 lakh tonnes for kharif 2017 as against 29 lakh tonnes in the previous season. Following a sharp drop in the prices due to excess production, Nafed produced about 8.3 lakh tonnes under the price support scheme (PSS).

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