May 12, 2006

Indian soymeal exports might hit record high in 2006

India's soymeal exports should hit a record high of 3.7 million tonnes in 2006, with Pakistan, Sri Lanka and Southeast Asian countries expected to be major customers, according to an official.

Rajesh Agrawal, chairman of the Soybean Processors Association of India (SOPA), said soymeal exports have already hit 3.11 million tonnes from October 2005 to April 2006, up by 145.25 percent on-year.

Domestic soymeal demand is also improving as fears of bird flu subside in India. Agrawal added that improved market sentiments have raised hopes in the domestic soybean industry of better prices and demand for soymeal, especially from the poultry sector.

A favourable monsoon has also raised hopes in the soybean industry that farmers would prefer growing the crop and maintain or improve production levels.

In April, India exported 368,302 tonnes of soymeal, jumping 227.77 percent from 112,366 tonnes during the same period last year, according to industry data.

SOPA reported that April's exports went mainly to countries including China, Vietnam, South Korea, Indonesia, Thailand and Japan.

For the April 2005 to March 2006 fiscal year, India exported 3.48 million tonnes of soymeal, up 76.55 percent over the previous fiscal year.