India’s soy meal exports decline by 71.54% in Oct–June period

Sai Nikesh | The Dollar Business

Farmers engaged in soy cultivation are highly distressed as India’s soybean meal exports have dropped drastically by about 85% to a meagre 0.64 MT in 2014-15from a record level of 4.24 million tonnes (MT) during FY 2008-09, said a study by Associated Chambers of Commerce and Industry (ASSOCHAM). The study titled ‘Soybean: Time to regain lost ground’ pointed out that significant slump in soybean meal exports from India is largely on account of speculation and an unrealistic approach in handling established export markets. And looking at near normal monsoon, the country is expected to reap rich harvest of over 12 MT soybean meal by putting pressure on domestic prices,as India has become globally uncompetitive and import of soy oil continues to increase, the study said. “Soybean scenario in India is currently at crossroads due to erratic production, declining soybean meal exports and consequent idling of plants, poor soybean oil output, while edible oil imports are growing and currently account for almost 60 % of country’s total requirement,” said D S Rawat, National Secretary General, ASSOCHAM, while releasing the findings of the study. Unless a targeted approach is initiated, India might permanently loose export market for soybean meal that has been so assiduously build over decades, he noted and urged that the industry should adopt a pragmatic approach to revive lost markets on soybean meal export front. Speaking to The Dollar Business, Davish Jain, Chairman, Soybean Processors Association of India (SOPA), said, “Export of Soybean meal during June, 2015 was 2,098 tonnes compared to 2,637 tonnes in June 2014, showing a decrease by 20.41% over the same period of last year.” Exports during the first three months of the current financial year stood at 34,160 tonnes compared to 86,741 tonnes exported during the same period of previous year, registering a sharp fall of 60.61%. During current crop year, (October – September), total exports between October 2014 and June 2015 has been recorded 5.83 lakh tonnes, down 71.54% against 20. 51 lakh tonnes shipped during the same period a year ago. Speaking on sowing and crop condition, Jain informed that SOPA has conducted a ground survey in mid-western part of Madhya Pradesh and parts of Vidarbha and Marathwada in Maharashtra, which covered 22 major soybean growing districts in total. In case of Madhya Pradesh (MP), which accounts for 60 % share of country’s total production, he said, “In MP, this year, sowing of soybean started earlier as compared to last year and almost 80% sowing of soybean was completed during the first spell of rains in mid-June.” The crop sown in this spell is currently under moisture stress, but, will still revive if rain occurs within next 3-4 days. Otherwise, the yield in this area will be adversely affected, overall vegetative growth and crop condition is also average, he added. In case of Maharashtra, which accounts for 30% share of the country’s production, he said, “The area under soybean cultivation in Maharashtra is satisfactory and higher than the government’s normal area of 28 lakh hectares.” In Rajasthan, area under soybean cultivation is likely to touch 10 lakh hectares.Thanks to late rainfall and availability of irrigation facility, the overall crop situation is reported to be quite satisfactory, he informed. On the whole, he said, “If the rain occurs latest by July 20, the crop development will be normal and satisfactory.” “As regards area coverage under soybean cultivation as on date, we have crossed 100 lakh hectares against last year’s total of 110 lakh hectares and there is a possibility that area under soybean, this year, will remain between 100 to 110 lakh hectares,” he added. According to SOPA’s data showing country-wise breakup of export during the first three months of 2015, United Arab Emirates is the top destination accouning for a total shipment of 9050 tonnes, followed by Myanmar (6750.205 tonnes), Saudi Arabia (5980 tonnes), Bahrain (3055 tonnes), and Kuwait (2852 tonnes), among others.

July 17, 2015 | 03:35 pm IST.