September 25, 2006

 

India's 2006/07 soymeal exports to China may reach one million tonnes

 

 

India's soymeal exports to China may touch one million tonnes in the marketing year to September 2007 from 700,000 tonnes in 2005/06, Davish Jain, Chairman of the Central Organisation for Oil Industry and Trade (COOIT), said Friday (Sep 22).

 

COOIT is India's apex industry body of traders and manufacturers of oils, oilseeds and related commodities.

 

"China is believed to have lifted the 5 percent import duty on Indian soymeal and this could increase our sales to that country," Jain told reporters said on the sidelines of an industry conference.

 

He said even though India's overall soymeal exports are likely to decline on year by around 500,000 tonnes in 2006/07, exports to China could still rise on good demand in the neighbouring country.

 

"We will export at least 700,000 tonnes soymeal to China next year, and if premiums offered are attractive, the volumes could be marginally higher by 100,000 tonnes to 300,000 tonnes," said Rajesh Agrawal, Chairman Soybean Processors Association of India.

 

The destination country will depend on the price offered, he said.

 

India's overall soymeal exports are estimated at 3.5 million tonnes next year, and there are other aggressive buyers too such as Vietnam, South Korea, Japan and Indonesia.

 

Jain, whose company--Prestige Foods--is one of India's largest soymeal exporters in terms of volumes, said the 5 percent import duty was not very large, but its removal indicates China's interest in purchasing soymeal of Asian origin.

 

It is around US$20/tonne cheaper to ship soymeal from India to China than from the Americas.

 

He said China's annual soymeal consumption is close to 30 million tonnes but imports this year are estimated at only 800,000 tonnes, most of which was supplied by India.

 

The bulk of China's soymeal demand is met through crushing of imported and locally produced soybeans in domestic processing units, Jain said.

 

The marketing year for soymeal runs from October to September.