Indian oilmeal exports slump 32% in January

 

 

Falling for the third straight month, India's January oilmeal exports declined 32% from a year earlier, due to weak demand from Vietnam, South Korea, Indonesia, Japan and Thailand.

 

Exports of oilmeal, which is used as animal feedstock, fell to 384,563 tonnes from 569,585 tonnes in the same month last year, the Solvent Extractors' Association of India said on Friday (Feb 5). The exports were also lower than 395,663 tonnes in December.

 

Soymeal exports, which contribute the bulk of sales, plummeted 54% to 240,318 tonnes in January from 521,243 tonnes a year earlier.

 

Oilmeal exports had fallen an annual 44% to 395,663 tonnes in December, and 49% in November to 346,859 tonnes.

 

Exports in the first 10 months of 2009-10 (April-March) were 2.7 million tonnes, down 41% from 4.6 million tonnes a year ago.

 

"We expect the annual exports to dip at least 30%," said B.V. Mehta, executive director of the trade body.

 

Mehta said the best period for sales had gone and with arrival of South American soy crop, there was little prospect for any pick up in the exports of Indian soymeal.

 

Brazil and Argentina, the world's No. 2 and No. 3 soy exporters, are heading to bumper soy crops this year after droughts caused production losses last season.

 

"Disparity with local prices and low crop size are also hitting exports," Mehta said.

 

India's oilmeal price has risen after the worst monsoon in 37 years hit the summer-sown oilseed crop, reducing output.

 

The Central Organisation for Oil Industry and Trade said India's output of summer-sown oilseeds fell 12.5% to 13.1 million tonnes in the crop year that began in July 2009, mainly due to lower soy output.