WASHINGTON: Poor crushing of soybean has led to fall in overall export of oilmeals by 40 per cent during the April-October 2015 period. As per data released by the Solvent Extractors’ Association of India (SEA), oilmeal exports during the period fell to 763,113 tonnes from 1.26 million tonnes for the corresponding period last year.
Oilmeals are ground oil cake after oil is pressed out of raw materials like rapeseed, cottonseed or soybean. In the month of October 2015 alone, oilmeal exports declined to 13,716 tonnes, down by 94 per cent from 238,703 tonnes for the same month last year.
“Soybean crushing has drastically reduced due to continuous disparity and high price of domestic market affecting overall domestic availability of both oils and meals which resulted in to fall in export,” said SEA in an official statement.
The export of soybean meal saw a a historical low of 46,980 tonnes during the first seven months of the current year 2015-16, as against 140,098 tonnes during the first seven months of the financial year 2015-16.
Similarly rapeseed meal export also reduced to one third of that reported last year. Rapeseed meal exports for the April-October period was around 282,448 tonnes as against 726,745 tonnes for the corresponding period last year.
“Capacity utilization is also at the lowest. Industry is passing through very tough time and many plants are close down due to disparity in crushing and export,” the association further stated.
According to SEA, the robust pace of soybean crushing and ample soybean supplies both in the northern and the southern hemisphere kept global market prices of soya meal under pressure and sharply below the year earlier levels.
Soybean meal of Argentina and Brazil origin are being currently quoted CIF Rotterdam at US $ 360-370 per tonnes, whereas Indian soybean meal is quoted at US $ 500 per tonne. Resultantly, India is totally out priced in international market due to high prices in local market.
