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Oilmeal exports double in October on demand revival

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BS Reporter Mumbai
Last Updated : Jan 21 2013 | 12:29 AM IST

In contrast, exports during April-October decline 42 per cent.

Oilmeal exports doubled in October on renewed demand from Asian markets and higher availability from domestic crushing mills.

According to data compiled by the Solvent Extractors’ Association (SEA), oilmeal shipment rose sharply by 102 per cent to 309,886 tonnes in October as against 153,436 tonnes in the corresponding month last year.

Attributing a revival in overseas demand, BV Mehta, executive director of SEA, said, “The recovery in global economy has resulted in a sudden surge in demand for animal feed despite increasing prices.”

The demand for animal feed generally goes up with economic growth in consumer countries.

Moreover, with the beginning of crushing of kharif oilseed, the availability of oilmeal has also improved. Generally, oilmeal exports begin in October and continue till March. Therefore, exports might increase further in coming months, Mehta added.

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On the contrary, overall exports of oilmeals during the first seven month of the financial year declined 42 per cent to 15,43,847 tonnes compared to 26,82,797 tonnes in the comparable period last year.

Weak demand and non-availability from domestic sources hampered supplies in the first half of the year.

Meanwhile, oilmeal prices went up marginally in the international market due to delay in harvesting in the US, lack of supply from South America and weakening dollar.

Soymeal is currently being quoted at $415 a tonne from the last month’s average price of $390. Similarly, rapeseed meal perked up to $245 as against $227 and $216 in the previous two months.

During the April-October period, China bought 178,882 tonnes of oilmeals from India mainly consisting 156,667 tonnes of rapeseed meal and small quantity of soymeal. However, exports to Vietnam were greatly reduced to 399,714 tonnes from 653,038 tonnes in the same period a year ago.

Shipment to South Korea, Japan, Indonesia and Thailand also witnessed a decline in volume terms.

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First Published: Nov 06 2009 | 12:48 AM IST

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