India is expected to export about a million tonnes of soymeal between June and September, as soybean arrivals in the markets have picked up, an expert has said.
For the first seven months of the 2009-10 oil year (October–September), soymeal exports stood at 1.6 million tonnes, down 41 per cent compared to the corresponding period previous year.
"Now, there is sufficient bean in the market as arrivals have picked up. If this continues, then perhaps we will be able to ship 8-10 lakh tonnes of soymeal from June-September in the best situation," Soybean Processor Association of India (SOPA) Spokesperson and Coordinator Rajesh Agarwal said.
An increase in arrivals is likely to lower prices of soybean and make it viable for processing units to produce soymeal, Agarwal said while adding that this will make the Indian meals' prices competitive like those of Brazil and Argentina.
Currently, the prices of the Indian soymeal are costly at Rs 16,300-16,400 per tonne, about Rs 600 more than the international rates.
When asked the reason for the rise in soybean arrivals, Agarwal said farmers needed money for sowing activity commencing this month, because of which they were offloading a part of 2.5 million tonnes of soy they held in stock.
"This has lowered bean prices a bit and there is a ray of hope there", Agarwal said. Farmers received Rs 2,200-2,700 per quintal of soybean last year.
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However, Agarwal said they were unlikely to realise the same price this year due to higher global output for soybean, which had led to farmers holding on to large stocks for sale.
Brazil and Argentina, the biggest producers of soybean, have produced seven million tonnes more oilseed this year. SOPA estimates India's soyameal exports in the current oil year to reach 2.5 million tonnes, down 22 per cent compared to 3.2 million tonnes in the 2008-09 oil year.