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M.R. Subramani

Chennai , Sept. 28

AT least 1.5 lakh tonnes of soyameal have been contracted for exports even as the trade has adopted a wait-and-watch attitude to get a clear picture of the soyabean crop.

Of this, China has bought about 50,000 tonnes for delivery next month, according to Mr Rajesh Agrawal, Chairman, Soyabean Processors Association of India.

"China needs the meal for immediate delivery and we are the only ones who can do it immediately," he said.

India can deliver the consignment in 15 days, whereas it will take over a month for China to get shipments from the US or South American nations such as Brazil and Argentina. China usually buys soyabean from US or South America and crushes them. However, these days it has turned a net importer of soyameal in view of the shortage faced by its compound feed industry. Compound feed is used by the livestock and poultry sector and soyameal makes up 20-25 per cent of this.

"China has begun to buy small parcels of oilmeals from us. Last year, it bought 1.75 lakh tonnes of oilmeals, including soyameal and this year, it could buy up to two lakh tonnes of oilmeals," said Mr B.V. Mehta, Executive Director, Solvent Extractors Association of India.

China is seen as a good market for India and trade relations between both nations have improved considerably during the last five years. Earlier, there was mistrust between the two nations.

"Things have changed for the solvent extraction units after we took out a delegation to China last year. Now, there is no problem in opening of letters of credit," Mr Mehta said.

With almost the entire 1.3-billion population consuming meat and chicken, the compound feed sector in that country is seen growing by 10 per cent every year.

"The soyameal consignments will be a mix from both the old and new crop. We had a carryover stock of 3.5 lakh tonnes of soyabean from last year," said Mr Agrawal.

The last consignment sold to China was at $210 (Rs 9,240) a tonne free alongside ship.

"Soyameal prices have tended to decline since the beginning of this week. Currently, they are ruling at $208 a tonne," said Mr Sandeep Bajoria, CEO, Sunwin Group and former Chairman of the solvent extractors body.

Ex-factory prices for soyameal in Indore are Rs 8,500-8,600 a tonne, while soyabean prices are quoting at Rs 11,700-11,750 a tonne.

"The trade is currently a bit cautions in entering into new contracts. It wants to know the crop size before deciding," Mr Bajoria said.

On reports of enquiries from Japan, he said there was a general demand from South-East Asia, particularly South Korea, Thailand, the Philippines and Taiwan.

"The trade is looking for clarity and things may be clear in a week's time," he said.

Meanwhile, Mr Agrawal said the soyabean crop was expected to be around 57.5 lakh tonnes against 58.5 lakh tonnes last year. "The crop has been affected by delay in rains and also a dry period during August," he said.

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