June 20, 2006

 

Indian soymeal exports double on strong demand from Asia

 

 

India's soy meal exports are expected to nearly double to 3.7 million tonnes in the year ending September 2006 on strong demand from Vietnam and Japan, a trade official said on Monday (Jun 19).

 

India's soymeal exports had doubled to 3.34 million tonnes between October and May compared with 1.45 million tonnes at the same time a year earlier.

 

Vietnam, Japan, China, South Korea and Indonesia were strong buyers of Indian soymeal said Rajesh Agrawal, chairman of the Soybean Processors' Association of India.

 

Vietnam topped the list of buyers, at 621,000 tonnes a year, followed by Japan with 521,000 tonnes and China with 518,000 tonnes.

 

He said strong buying was also emerging from Bangladesh and Pakistan which purchase about 25,000 tonnes of meal each month. The two countries together were expected to buy around 150,000 tonnes of meal during the year, he said.

 

Indian soymeal is popular because it is non-genetically modified and of good quality, Agrawal said.

 

Agrawal said bird flu in Maharashtra early this year had dampened domestic demand for feedstock and allowed greater supplies for exports.

 

The official said lack of rains leading to a delay in sowing in main growing regions of Madhya Pradesh were raising concern.

 

However, India's annual monsoon rains, critical for farm production, are coming back to life after a two-week slowdown, weather officials said. The monsoon covers about half of India.

 

Transport costs have been kept down as rail and freight charges to key importing countires remain favourable, Agrawal said.