March 9, 2012

For the current crop year ending September, India's soymeal exports through the land route, may touch 4.0-4.2 million tonnes, said Davish Jain, managing director of Indore-based Prestige Group of Industries.

According to data from the Soy Processors Association of India, soymeal exports stood at 4.1 million tonnes in 2010-11 (October-September) through the sea route, and 800,000-900,000 tonnes to neighbouring countries.

"We have already shipped 2.3 million tonnes soymeal by sea route and 400,000 tonnes by rail or road to neighbouring countries during October-February, 1.3-1.5 million tonnes more exports are expected this season," Jain, who is also the former president of the Central Organisation for Oil Industry and Trade, told NewsWire18. He said soymeal exports in March are likely to be around 300,000 tonnes.

In February, India's soymeal exports, excluding those to neighbouring countries, were at 370,524 tonnes, down from 545,039 tonnes, SOPA data showed.

"There has been some setback (in soymeal demand) because the Indian currency has appreciated. There was devaluation earlier, which actually helped to push good quantities during the peak season time. But, the sudden strengthening of rupee in January-February has resulted in a setback," Jain said.

The rupee has appreciated nearly 1% in February against the dollar and 7.7% in January-February period. Japan and Vietnam are the top two destinations for Indian soymeal exports.

Since the last one year, Vietnam's Plant and Quarantine Authority has been complaining about infestation of khapra beetle and live weevils in agricultural commodities exported from India, and warned imports from India could be banned.  But, Jain is not very apprehensive about exports to Vietnam.

"I think the problem was not very significant with soymeal, it was more with shipment of corn. The problem is with grains, which have high carbohydrates. Soymeal has protein, which has less infestation problem. Corn is a natural agriculture commodity, while soymeal is a manufactured product, so infestation chances are much lower," he said.

On production of soymeal, Jain said, during October-February, India's soymeal output was 4.3-4.4 million tonnes and another 3.5 million tonnes is expected to be produced in the remaining part of the season. Domestic consumption of soymeal has been 1.37 million tonnes in the first five months.