The shipment of oilmeals, a major animal and bird feed, jumped 24 per cent in December on better availability supported well by rapidly growing demand from overseas.
The rise in oilmeal exports indicates an increase in the expenditure on birds and animals — on a recovery in economic activity.
Data compiled by the Solvent Extractors’ Association (SEA) show oilmeal exports jumped to 953,526 tonnes in December 2011 as compared to 765,954 tonnes in the corresponding month last year. During the first nine months of the current financial year, Indian traders managed to ship 38,68,831 tonnes of oilmeals — a rise of 23 per cent from 31,47,512 tonnes during the same period of last year.
Better kharif soybean crop, fall in rupee and positive crushing parity boosted processing and export of oilmeals during the third quarter of the current fiscal year, which witnessed four per cent growth in the shipment. During the last quarter of 2011 ending December, total shipment was recorded at 18,34,714 tonnes, as compared to 17,71,303 tonnes in the corresponding quarter of the previous year.
So far this financial year, October 2011 was the first month, when overall oilmeal exports contracted — by 31 per cent to 353,300 tonnes, as compared to 512,609 tonnes in the same month last year.
Oilmeals exporters are going to benefit from both sides. Not only has there been a boost in realisation — it shot up by 15 per cent last calendar year — the depreciation in rupee has also offered tremendous profits.
As a consequence, traders shipped the maximum quantity of oilmeals during the last quarter. The Indian currency has fallen from the average level of 45.35 against US dollar in January 2011 as against 52.38 in December 2011.
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Meanwhile, average soybean meal price surged to $408 a tonne from $334 a tonne last year. Similarly, rapeseed meal and groundnut meal prices jumped to trade at an average $229 and $329 a tonne in December from $181 and $297 a tonne in January respectively.
Oilmeal exports to Japan during April-December 2011 reported at 938,317 tonnes as compared to 849,370 tonnes last year consisting of 908,809 tonnes of soybean meal and 29,508 tonnes of rapeseed meal.
Vietnam imported of 700,472 tonnes compared to 542,676 tonnes last year comprising 538,602 tonnes of soybean meal, 36,245 tonnes of rapeseed meal and entire quantity of 125,625 tonnes of rice bran extraction. South Korea imported 553,795 tonnes compared to 360,172 tonnes of last year while. China managed to buy 344,140 tonnes compared to 313,029 tonnes. Europe and others have imported 170,863 tonnes compared to 140,083 tonnes during the last year.