December 30, 2008

India 2008-09 soymeal exports likely over 5 million tonnes

India's soymeal exports in the marketing year ending September 2009 will likely cross 5 million tonnes, more than last year's level, despite a slow start to the season, a senior industry official said Tuesday (Dec 30).

"Our 2008-09 export target is 5.5 million tonnes," said Rajesh Agrawal, a spokesman of the Indore-based Soybean Processors Association of India. "We hope to export at least 5 million tonnes this year."

In 2007-08, India exported 4.9 million tonnes of soymeal.

Soymeal exports fell 46 percent in October to 92,424 tonnes, as overseas buyers backed out of deals due to a slide in prices after they entered into contracts. Indian shipments have now picked up as prices have risen to more than US$300-$310/tonne from US$265-$290/tonne two months ago.

Vietnam, Japan and South Korea are the main destinations for Indian soymeal exports.

Vietnam will remain the biggest buyer for India's soymeal this year with estimated purchases of 800,000 tonnes in the year to September, said a leading Indore-based trader, declining to be named.

He said one or two shipments totalling 20,000-30,000 tonnes were also bought for Europe recently.

Iran has also emerged as a prominent buyer with purchases of around 75,000 tonnes so far and plans to buy another 100,000 tonnes, he added.

Agrawal said exports would reach at least 600,000 tonnes in December against 551,382 tonnes a year ago, due to higher prices.

Global soymeal prices have now begun rising on the expectation of lower output in South America because of a spell of dry weather, he added.

Soy, India's main summer sown oilseed crop, is planted in June-July and harvested from October onwards.