India's oilmeal export in this fiscal is likely to remain at around last year's level of about 5 million tonnes if monsoon remains favourable, according to an industry body.
"We expect to ship around 4.5 to 5 million tonnes of oilmeal worth about Rs 7,000 to Rs 8,000 crore almost same as in the past fiscal depending upon a favourable monsoon," Solvent Extractors' Association of India (SEA) Executive Director B V Mehta said.
India's oilmeal export jumped by 57 per cent to 5.07 million tonnes last fiscal as compared to 3.22 million tonnes in the year-ago period driven by the high price of edible oils, better crushing margins and demand from Southeast Asia, SEA had said earlier.
In value terms total exports grew 59 per cent to Rs 8,220 crore in 2010-11, compared to Rs 5,176 crore in the previous financial year, SEA added. There have been a few problems where exports to countries like Vietnam have suffered but over all the situation (export) is favourable, Mehta said.
"Authorities in Vietnam had quarantined two shiploads of oilmeal and the shipment was later rejected," he added.
Authorities in Vietnam had quarantined two shiploads of oilmeal from India after high levels of methyl bromide – a fumigant used for pest control – was found in the commodity about two months back.
The shipment was later rejected after it was kept on hold for two months. "We have now advised our members to start quoting oilmeal prices on freight-on-board (FoB) basis," Mehta said.
Under FoB the seller has to fulfill his obligation to physically load the goods on the ship at the country of origin and his cost excludes the cost of freight and insurance.
India had exported 8,53,869 tonnes of oilmeal to Vietnam in the past fiscal, which comprised almost 17 per cent of the total oilmeal exports. In FY10, the country had shipped 8,57,690 tonnes to Vietnam that comprised almost 27 per cent of the total oilmeal exports (3.22 million tonnes).
Mehta said that exports to Southeast Asian countries has been increasing due to India's close presence to the importing markets and the country allowing exports of small quantities.
"India being close to the Southeast Asian markets make it a favourable choice as compared to the South American countries and also because we also export small amount (40,000 to 50,000 tonnes), which is not the case with Argentina, the US and Brazil," Mehta said.
