India’s oilmeals exports declined 36 per cent to 23.73 lakh tonnes in the last fiscal, while in value terms the shipments were down 37 per cent to Rs 5,600 crore on lower sale of soyabean meal in the overseas markets, according to industry data.
Solvent Extractors’ Association of India (SEA) said in a statement that the export of oilmeals at 2,42,043 tonnes fell 25 per cent in March, 2022 compared to 3,22,850 tonnes in March 2021.
The overall export of oilmeals during the last fiscal stood at 23,73,744 tonnes compared to 36,89,483 tonnes in the 2020-21 financial year.
In term of value, oilmeals exports fell to Rs 5,600 crore in 2021-22 from Rs 8,866 crore in the previous year.
The exports declined in the last fiscal due to lesser overseas shipment of soybean meal, which plunged to 3,72,740 tonnes in the 2021-22 fiscal from a whopping 15,64,833 tonnes a year ago.
“Soybean crush margins in India are currently squeezed by pressure on meal prices and relatively high price expectation of farmers for soybean seed which is currently quoted over Rs 7,600 per quintal,” SEA said.
At present, Indian soybean meal is over-priced for exports as the rate quoted at Kandla port is at $840 per tonne in comparison to $574 and $586 for each tonne of shipments originating from Brazil and Argentina, respectively.
“India is unlikely to be competitive for export in near future due to high price of domestic soybean seed. Crushing of soybean is low as farmers are holding stock in anticipation of higher prices as seen by them in last year. This is also pushing higher import of crude soybean oil in to India,” SEA said.
In 2020-21, India had exported about 2,25,000 tonnes of organic soybean meal to USA. However, the shipment reduced to just 65,000 tonnes last fiscal.
There is a good demand of soyabean oil from India in European countries as it produces only non-genetically modified soybean meal. However, during the last fiscal, the country exported only 1.2 lakh tonnes as against 5 lakh tonnes in the previous year.