Export of Oilmeals down by 48% in April - December 2015

The Solvent Extractors' Association of India has compiled the export data for export of oilmeals for the month of Dec., 2015. The export of oilmeals during December 2015 is reported at 59,818 tons compared to 410,178 tons in December 2014 i.e. down by 85%. The overall export of oilmeals during April-December 2015 is reduced to nearly half (48%) compared to last year and reported at 963,442 tons against 1,862,283 tons during the same period of last year and 3,202,981 tons in 2013-14. Soybean crushing is very much reduced due to continuous disparity and high price of domestic market affecting overall domestic availability of both oils and meals. The capacity utilization is at the lowest. Industry is passing through very tough time and many plants are close down or operating at very low capacity due to disparity in crushing and export. Rapeseed meal export is also reduced to 1/3rd of last year.

The export of soybean meal is at a historical low during current year and reported 61,556 tons during the first nine months of the financial year 2015-16 compared to 444,736 tons in the previous year 2014-15 and 2,010,788 tons during the same period of 2013-14. Currently FOB/FAS Indian soybean meal is quoted at US$ 490 per ton against Argentina origin soybean meal CIF Rotterdam at US$ 331 per ton. Indian soybean meal is nearly out priced by US$ 160 per ton in international market.

The alarming declines of Indian oilseeds production and crushing are going along with booming import demand for vegetable oils and have brought oilmeal exports from India almost to a standstill. The Association has pleaded with the Central Government for reducing the import duty to 5-10% from the current 30% on high oil content oilseeds like rapeseed/mustard(canola) and sunflower seed. This will have a multitude of advantages viz. reduce import of edible oils, larger availability of oilmeals for local consumption by feed industry and export. Increase value addition in India thus contribute towards the Prime Ministers Make-in-India Programme. Further the oilseeds imports will not have any adverse impact on the farmers as they are protected with an assured M.S.P. by the Government.

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