India’s oilmeal exports see a sharp dip in April - December 2014

Soybean meal exports have dipped almost 78% y/y in April-December 2014; industry seeks hike in import duty on edible oil

The Dollar Business Bureau A plunge in soybean oilmeal exports due to low international prices has resulted in a sharp decline in India’s overall oilmeal exports in the first eight months of FY2014-15. According to the Solvent Extractors’ Association of India (SEA), India’s oilmeal exports during April-December 2014 stood at around 1.84 million tonnes, which is down about 42% from around 3.2 million tonnes recorded during the corresponding period in the previous year. The main reason for the slump is low international price of soybean oilmeal, exports of which have declined to around 444,736 tonnes in April – December 2014, down about 78% from around 2 million tonnes in the same period in FY2013-14. SEA said in a statement, “Export of soybean meal greatly reduced in last 9 months due to total disparity for soybean meal in international market.” According to SEA, average FOB soybean meal price has declined sharply from $569 per tonne in September 2014 to $483 per tonne in December 2014, a fall of around 15%. India’s overall oilmeal exports in April – December 2014 have declined significantly to key markets of Iran and EU, declining around 69.45% and 62.74% y/y respectively, said SEA. Earlier, sources had told The Dollar Business that Iran has reduced oilmeal imports from India this year due to high prices when compared to prices in the Americas. Industry sources have urged the government to increase the import duty on edible oil, and encourage imports of oilseeds to boost oilmeal exports from India.

This article was published on January 8, 2015.

The Dollar Business Bureau - Jan 08, 2015 12:00 IST
 
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