February 6, 2008

India 07/08 soymeal exports may hit 5 million tonnes

India's soymeal exports may reach 5 million tonnes in the year ending September, up 47.1 percent on-year, onstrong global demand and fall in domestic consumption due to a bird flu outbreak.

Vijay Gupta, chairman and managing director, Gujarat Ambuja Exports Ltd , India's second largest soymeal exporter, told Reuters that China is now a major buyer while big importers now include Japan, Indonesia, Malaysia, Vietnam and Thailand.

The Soybean Processors' Association of India had earlier pegged exports at 4-4.5 million tonnes against 2006/07 exports at 3.4 million tonnes.

India's poultry industry may not be an aggressive buyer after bird flu was confirmed on January 15, which led to a ban on poultry imports from India and a sharp fall in prices, officials said.

Gujarat Ambuja Exports has contracted to export 350,000 tonnes by March, mainly to Vietnam and hopes to contract another 150,000 tonnes in coming weeks.

Observers said that strong overseas demand is likely to keep prices firm. Soymeal prices, which had dropped below INR15,500 (US$393) per tonne just after the bird flu outbreak, hit INR16,000 (US$406) per tonne on Tuesday.

The Central Organisation for Oil Industry and Trade estimated that India could produce 9.49 million tonnes of winter harvested soy crop in 2007/08 against 7.98 million tonnes a year ago.