An unexpected increase in demand for feed from its poultry industry has led China to import 24,000 tonnes of soymeal from India. China's main soymeal sources have been the United States, Brazil and Argentina.

With expected soybean harvest of 6.6 million tonnes in the 2004-05 crop year (October 2004 to September 2005), India could export about 2 million tonnes of soymeal in the year. About 80 percent of the soymeal goes to South Korea, Indonesia, Malaysia and other south-east Asian countries.

Although the recent Chinese purchase of Indian soymeal seemed insignificant, it has encouraged Indian exporters to look at the possibilities of increasing the export to China through negotiations between industry associations.