 "Oilmeal exports drop 42% in April-Dec 2014")
Faced with a 42 per cent decline in exports between April and December, oilmeal exporters have sought government help to incentivise the sector.
India’s oilmeal exports have been declining for three years.
After a record 5.6-million tonne export in 2011-12, shipments fell to 4.85 mt in the following year and 4.33 mt in 2013-14. However, FY15 has been the slowest in many years, with overall export at 1.84 mt during April-December against 3.19 mt in the corresponding year-ago period.
“The situation can only change with higher import duty imposed on edible oils, which in turn can support the export of soybean meal. The government should also give higher Vishesh Krishi Gram Upaj Yojana allocation on export of oilmeal to provide some support to check the falling export,” said Pravin Lunkad, president of the Solvent Extractors’ Association.
While the government has raised import duty by five per cent, the sector terms it insufficient for any significant change.
India’s oilmeal exports have been declining for three years.
After a record 5.6-million tonne export in 2011-12, shipments fell to 4.85 mt in the following year and 4.33 mt in 2013-14. However, FY15 has been the slowest in many years, with overall export at 1.84 mt during April-December against 3.19 mt in the corresponding year-ago period.
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The demand for oilmeal, used as bird feed and animal feed, indicates global economic direction. With weak global economies, spends on bird feed and animal feed have taken a hit. Also, India’s importers have diverted orders to South American countries such as Brazil and Argentina.
“The situation can only change with higher import duty imposed on edible oils, which in turn can support the export of soybean meal. The government should also give higher Vishesh Krishi Gram Upaj Yojana allocation on export of oilmeal to provide some support to check the falling export,” said Pravin Lunkad, president of the Solvent Extractors’ Association.
While the government has raised import duty by five per cent, the sector terms it insufficient for any significant change.