March 7, 2012

Dragged down by a ban on the country's oilmeal imports by China, India's February oilmeal exports dropped 33% to 470,504 tonnes compared to a year ago, a leading trade body said on Tuesday (Mar 6).

Soymeal exports, which account for the bulk of India's oilmeal sales, were at 329,180 tonnes in February, down 39% from a year ago, the Solvent Extractors' Association of India said in a statement.

Exports of rapeseed meal in February dropped by more than 45% to 79,932 tonnes as compared to 147,655 tonnes a year ago.

"One main reason for the fall in oilmeal exports is a ban on imports by China. Rising prices of oilmeal have also impacted the demand," said Chowda Reddy, senior analyst at JRG Wealth Management.

However, Reddy expects exports to improve in coming months due to overall good demand for oilmeals.

On January 23, Beijing halted imports of oilmeals from India after it found a hazardous chemical in the product.

However, shipments in April-February were up 9% at 4.9 million tonnes from 4.5 million tonnes in the year-ago period due to a better soy crop and crushing parity, the statement said.

During the April-February period, Japan, Vietnam and South Korea were the top buyers. Exports to Middle East countries during the first 11 months of the current financial year rose to 505,506 tonnes from 482,919 tonnes a year ago.