May 8, 2012

India's April oilmeal exports drop to 400,427 tonnes

After China stopped buying oilmeals because of fears on hazardous chemicals and high seed prices crimped crushing margins, India's oilmeal exports fell to 400,427 tonnes in April from 513,221 tonnes a year ago, a trade body said on Friday (May 4).

Rapeseed meal exports in April, the first month of the new fiscal year, dropped to 43,233 tonnes from 142,232 tonnes a year ago, according to data from the Solvent Extractors' Association of India (SEA). Rapeseed meal exports in March and February were down 20% and 45% respectively from a year ago.

"Exports have come down because China, one of the major buyers, has completely stopped buying from India since January," B.V. Mehta, executive director of SEA told Reuters.

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

But oilmeal exports to Iran rose more than two fold to 97,904 tonnes in April from 39,798 tonnes last month.

India is trying to boost exports to Iran in order to reduce its trade imbalance as it seeks ways to cut an US$11 billion a year bill for oil imports that it is finding hard to pay for because of western sanctions.

Soymeal exports, which accounted for the bulk of sales, edged up to 313,832 tonnes in April from 305,033 tonnes a year ago, the SEA said in a statement.

"Oilmeal exports may remain lower in the next month as well because we would not be able to supply to the buyers. When there is no profit that is going to crush?" said Mehta.

During April, Japan, Vietnam and South Korea were the top three buyers.

India's oilmeal exports in the 2011-12 fiscal year rose 8.9% from a year earlier to 5.52 million tonnes.