Financial Daily from THE HINDU group of publications
Friday, Oct 10, 2003
Agri-Biz & Commodities
Oilseeds & Edible Oil
Industry & Economy - Exports & Imports
Oilmeal exports may top 35 lakh t
Mumbai/Chennai , Oct. 9
OILMEALS exports are likely to stage a recovery from the third quarter of the current financial year on rising demand for compound feed as the global economy bounces back.
"Oilmeal exports are likely to revive after two years.
With prospects of oilseed crop being good, things look bright," the Solvent Extractors Association of India Secretary-General, Mr B.V. Mehta, told Business Line.
Though oilmeal exports might not touch the high of 41.37 lakh tonnes witnessed during 1997-98, it could reach 35 lakh tonnes, Mr Mehta said.
"We have to look at the domestic demand for oilmeals, which is rising at the rate of 8 to 10 per cent annually. After meeting our domestic demand, there will be enough surplus to export this year," he said.
Export demand for soymeal is expected to expand in the next 2-3 months, according to exporters. Close to 12 lakh tonnes had already been committed for export during the next three months, said a representative of a trading house.
These export contracts are priced at around $190-195 a tonne f.a.s (free-alongside-ship), said another exporter.
According to exporters, they are getting a price of over $245 a tonne cost, insurance and freight (c.i.f) for soyameal.
Mr Mehta said countries such as South Korea, Japan, Indonesia and China were looking to India to source their oilmeal needs for compound feed.
China produces 50 million tonnes (mt) of compound feed annually, Japan produces 25 mt, Korea 14 mt and Indonesia 5 mt. "Oilmeals make up 20-25 per cent of the compound feed," he said.
Use for compound feed was seen rising on demand for poultry meet across the globe. "These are signs of economic revival," an exporter said.
"Demand will not be confined just to soyameal. We see a good demand for groundnut meal and rapeseed meal also," Mr Mehta said.
During the first half of the current fiscal, oilmeal exports have actually declined to 4.12 lakh tonnes (lt) against 5.47 lt during the same period last year. During 2002-03, oilmeal exports totalled 18.96 lt, down from 30.02 lt the previous year. While soyameal exports were down to 13.33 lt from 2.5 9 lt, rapeseed shipments were up to 4.55 lt from 3.13 lt. Last fiscal, groundnut meal exports were revived, though exports were a meagre 15,225 tonnes. Besides, castormeal is also exported to countries such as Taiwan and Korea for use as organic fertiliser.
Oilmeal export scenario is looking good also due to good kharif oilseeds crop prospects.
Oilseeds output in ensuing season 2003-04 (November-October) is estimated to touch 150 lt as per preliminary estimate of the Union Agriculture Ministry, although trade associations estimate it slightly lower at about 130 lt as compared with 92.2 lt of kharif 2002. As a result, availability of raw material for crushing and oilmeals/oilcake will increase.
According to Mr Mehta, prospects for rapeseed, sowing during rabi, are looking good.
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