The export of oilmeals during 1999-2000 has declined to 24.3 lakh tonne from 33.3 lakh tonne in the previous year and 41.7 lakh tonne during 1997-98.
According to oil industry sources, the factors responsible for such a decline are:
lFall in prices of both oil and meal in the international market have made exports less remunerative.
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lThe decline in oilseeds production has also affected the production of meal and surplus for exports.
lExcessive import of edible oils has seriously threatened the working of solvent extraction plants & crushing units.
lThe economic crisis in most far-east countries during the last 2 to 3 years (70 per cent of India's deoiled meal is being exported to these countries).
lExcessive production and crushing of oilseeds has resulted in a glut in the protein market.
lUSA, Canada and other countries are offering soft loans for 1 to 3 years for buying oilseed or meal which has also affected India's competitiveness & shipments.
lChina has changed its policy and moved from import of vegetable oils to oilseeds. The surplus of oilmeal produced is being dumped in far east countries affecting our export.
lThe oilseed crop during the current year is down 13 cent to 190 lakh tonne in 1999-2000 from 217 lakh tonne (1998-99). (The Ministry of Agriculture has estimated the production of oilseeds during 1999-2000 at 216.2 lakh tonne against 251.8 lakh tonne last year). This has led to a shortage of raw material and of oilmeal for exports, pushing up prices of domestic oilcakes and making exports unremunerative.
Moreover, edible oil prices have gone down considerably in the last two years due to excessive imports and this has hit the overall viability of the industry.
Earlier, when vegetable oil prices were ruling at reasonable levels, it was indirectly supporting the exports of oilmeals. But, with the fall in price of both oil and meal, exports have become less remunerative and have been declining in the last three years.
Sandeep Bajoria, president of the Solvent Extractors' Association of India, said the fall in oilseeds production has a direct impact on export of oilmeals. "There is an urgent need to encourage import of oil-bearing material like ricebran & oilcakes and high oil content oilseeds like sunflowerseed", he said. The current import duty on oilseeds and oil bearing material is 35 per cent + surcharge + 4 per cent SAD (effectively 44.04 per cent) makes the import unviable. "We would like to suggest to the government to consider reducing import duty," he said.