August 27, 2013

India's soymeal exports reach up to 400,000 tonnes for Oct-Dec shipment

India, Asia's top soymeal exporter, has sold 350,000 tonnes to 400,000 tonnes of new-crop soymeal for shipments between October and December 2013, due to prospects of higher soy productions and a weak rupee currency. 

India, struck deals at US$440 to US$480/tonne, on a free-on-board basis, amid volatility in the rupee which hit a record low last week, said Rajesh Agrawal, chief co-ordinator at Soy Processors Association of India, a trade body. "Buyers are mainly Southeast Asian countries and Iran," he said.

A senior industry official said that India's soy production is likely to rise by as much as 18% to a record 13.34 million tonnes in 2013-14 from the year before on the back of higher area. However, heavy rainfall in the top soy producing central state of Madhya Pradesh in the last five days and forecast of more rainfall in the next three days raised concerns over the output.

"There won't be damage to crop as it has already grown, but on productivity front, there would be some losses. Yields would be lower due to lack of sunlight," Agrawal said.

Soy production would be higher than last year, but there will not be a sharp rise in the output that industry was earlier expecting due to an expansion in soy acreage, he said.

As of August 22, there were 12.18 million hectares reserved for soy cultivation in India compared with 10.64 million hectares a year earlier, farm ministry data showed last week.