April 7, 2008

India's soymeal exports to surge on new tax incentives

India's recent tax incentive, which is to provide 5 percent reimbursement to soymeal and soy product exporters, is seen to boost shipments of soymeal, which is already the country's largest exported oilmeal.

Last week, the federal government announced the scheme in the form of adjustment in import duties.

D.R. Kalra, executive director of Soybean Processors Association of India, said the benefits from the scheme could increase soymeal exports from India in the marketing year that began in September to around 5 million tonnes, up from the expected 4.5 million tonnes.

Kalra said exports would also rise because of good production and high prices of around US$400 a tonne in the international markets.

Soy production in India this year could breach earlier estimates of 9.4 million tonnes, which, along with high international prices, would help in boosting exports, Kalra explained.

India annually exports INR3.5 billion (US$87.5 million) worth of soymeal, mostly to Southeast Asian nations such as Thailand, Vietnam and Indonesia.

As per SOPA, India's exports in the current marketing year until February rose 19.20 percent on-year to 2.6 million tonnes.

The export price of soymeal in February reached a record high of US$438-US$440/tonne, free on board, compared with an average price of US$200-US$250/ton last year.