Oilmeal exports declined 44 per cent in December due to weak export demand coupled with lower crushing. Price disparity in the last three months due to excessive speculation in futures market also led to the decline.
Data compiled by the Mumbai-based Solvent Extractors’ Association (SEA) showed that the total oilmeal shipments nosedived to 395,663 tonnes in December 2009 as compared with 708,631 tonnes in the corresponding month last year.
During April-December period of the current financial year, total exports of oilmeal plunged 44 per cent to 2.28 million tonnes as compared with 4.07 million tonnes in the corresponding period of the last financial year.
| SHIPMENTS | ||
| Oilmeal (in tonnes) |
April-December | |
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B V Mehta, executive director of SEA attributed the export fall partly to the rupee’s appreciation. Rupee appreciated to 46.09 against the dollar by the end of December from 48.52 in the beginning of the April.
Exports during the first quarter of 2009-10 dipped 57 per cent which continued in the second and third quarters as soybean farmers were reluctant not to release their holdings in anticipation of higher future prices.
During the first nine months of the current financial year, China bought 232,934 tonnes of oilmeal mainly consisting of rapeseed meal (178,695 tonnes), 48,739 tonnes of soybean meal and 5,500 tonnes of groundnut meal. Shipments to Vietnam reduced to 625,589 tonnes from 1,109,765 tonnes.
Similarly, exports to South Korea, Japan, Indonesia and Thailand also declined due to the overall fall in exports.
The exports from Kandla were at 1,303,799 tonnes (57 per cent), followed by Mumbai including JNPT which handled 501,263 tonnes (22 per cent), Mundra handled 248,512 tonnes (11 per cent), Bedi 126,313 tonnes (6 per cent), Kakinada 42,930 tonnes (2 per cent), Vizag handled 39,746 tonnes (2 per cent) and Kolkata handled 23,806 tonnes (1 per cent). Mundra is emerging as the preferred port for exports.
Also crushers are not willing to take up their business due to price disparity. According to Mehta, crushing of oilseed today fetches a loss of Rs 1,000 a tonne due to higher seed and lower oil prices.
