Indian oilmeal exports decline sharply in December

Indian oilmeal exports declined 44% in December due to weak export demand coupled with lower crushing, as well as price disparity in the last three months due to excessive speculation in futures market.

Data compiled by the Mumbai-based Solvent Extractors' Association (SEA) showed that the total oilmeal  shipments nosedived to 395,663 tonnes in December 2009 as compared with 708,631 tonnes in the corresponding month last year.

During April-December period of the current financial year, total exports of oilmeal plunged 44% to 2.28 million tonnes as compared with 4.07 million tonnes in the corresponding period of the last financial year.

SEA executive director B.V. Mehta attributed the export fall partly to the rupee's appreciation. Rupee appreciated to 46.09 against the dollar by the end of December from 48.52 in the beginning of the April.

Exports during the first quarter of 2009-10 dipped 57% which continued in the second and third quarters as soy farmers were reluctant not to release their holdings in anticipation of higher future prices.

During the first nine months of the current financial year, China bought 232,934 tonnes of oilmeal mainly consisting of rapeseed meal (178,695 tonnes) and 48,739 tonnes of soymeal. Shipments to Vietnam reduced to 625,589 tonnes from 1,109,765 tonnes.

Similarly, exports to South Korea, Japan, Indonesia and Thailand also declined due to the overall fall in exports.

Meanwhile, crushers are not willing to take up their business due to price disparity. According to Mehta, crushing of oilseed today fetches a loss of Rs1,000 a tonne due to higher seed and lower oil prices.