Oilmeal exports may rise 12%

The country's oilmeal exports in 2007-08 (April-March) are likely to rise 11.7 per cent to a record high of 5.7 million tonnes mainly driven by global shortage of oilseeds amid higher domestic production, senior industry officials said.

Earnings from meal exports in 2007-08 are seen rising 50 per cent to Rs 6,000 crore, said B V Mehta, executive director, Solvent Extractors' Association of India.

Increase in exports both in volume and value terms has been driven by a rise in soymeal sales, said Davish Jain, chairman, Central Organisation of Oil Industry and Trade.

"Oilmeal exports from India are at an all-time high. So far, 1.2 million tonnes of soymeal have been contracted for exports," Jain said on the sidelines of a news conference ahead of the two-day kharif convention on oilseeds industry here.

India's oilmeal export industry is mainly benefiting from global shortage of oilseeds. Its proximity to the world major oilmeal market "� Asia "� is another factor, industry officials said.

"India has a freight advantage over other meal exporters such as Brazil and Argentina as ocean freight rates have risen to $130 a tonne from $50-60 a tonne," Mehta said.

This year, India's meal exports have gone to several Asian countries including China, Vietnam, Taiwan, Korea, and Japan. Vietnam and China have stepped up purchases from India, industry officials said. Higher output of kharif oilseeds in the 2007-08 season (November-October) has augured well for the country's oilmeal exports.

Kharif estimates by COIIT have pegged India's oilseeds output at 15.2 million tonnes. The industry body is likely to revise estimates higher mainly because of higher soybean and groundnut crop.

Soymeal exports in 2007-08 (April-March) are seen at 4 million tonnes compared with 3.7 million tonnes last year.

Groundnut meal exports may be 150,000-200,000 tonnes compared with 100,000 tonnes in the previous year. Ricebran extraction and castor meal are also likely to increase.

However, rapeseed mustard meal exports may drop to 900,000 tonnes from 1 million tonnes in the previous year, Mehta said.

Rupee's firm trend against dollar is likely to have a muted impact on oilmeal exports, as prices have also risen along with volumes. Meal prices have been on an upward trend primarily because of global shortage as well as increased demand caused by avian influenza and bovine diseases, industry officials said.

Soymeal prices are currently at a record high of $356 (Rs13,991 rupees) a tonne. They have risen 75 per cent from a year ago, Mehta said.

Rapeseed mustard meal prices have moved up 65 per cent to $177 (Rs 6,956) a tonne and groundnut meal 64 per cent to $255 (Rs 10,021) a tonne.