However, with improvement in Asian economies, the international demand for oilmeal has started showing signs of recovery. Taking advantage of the rising demand, a trade delegation from the Solvent Extractor's Association (SEA) led by commerce ministry officials, have left on a tour of Singapore and Southeast Asia to woo back buyers.

The Far East markets are the traditional markets for Indian deoiled meals and its share is about 70% of the total oilmeal exports.

"We thought that this would be the appropriate time to depute a trade delegation to revive our export markets in these countries," said SEA president Sandeep Bajoria. The delegation, which left on June 17 on its 15-day tour, not only aims at regaining the markets of deoiled meal in these countries but has also planned to promote the usage of other oilmeals as natural fertilisers, Bajoria added. "We would meet all leading feed millers and importers of feed ingredients. Our plans include promotion of oilmeals like castormeal, neemseed extraction and rapeseed meal which are used by Japan, Taiwan and South Korea as fertilisers for certain plantation crops."Bajoria pointed out that demand for castor meal as a natural fertiliser was picking up very fast and if India tapped this option judiciously it could lead to a substantial increase in exports.

Oilmeal exports, which stood at 42 lakh tonne in 1997-98, fell to 33.33 lakh tonne in 1998-99. In the year 1999-2000, there was a further downfall with exports falling to 24.3 lakh tonnes. Value wise too there has been a steep decline from Rs 3,200 crore in 1997-98 to Rs 2,000 crore and Rs 1,700 crore in the subsequent years.

According to Bajoria, there were other factors too responsible for India's declining exports other than the economic crisis in the buyer countries.

They include a decline in domestic oilseeds production coupled with excessive imports of edible oil, heavy production and crushing of oilseeds the world over and steep competition from China.

K M L Chhabra of Council of Oil Trade and Industry (COOTI) agrees with Bajoria. "Stagnant oilseed production in the country is an important reason behind low oilmeal exports. Millers are not getting enough oilseeds because of not only a shortfall in production but also due to farmers holding back stock in hope of better prices."

Oilseed extraction has also declined substantially. Soyabean extract has gone down from 27 lakh tonne in 1998-99 to 22 lakh tonne in 1999-2000. Rapeseed extract has gone down from 4.2 lakh tonne to a mere 79,000 mt in 1999-2000.

Chhabra believes that the delegation's visit is well-timed and could play a major part in boosting oilmeal exports from India. "The delegation will meet old customers and find out what their problems were."

He added that with one-to-one meetings with buyers, oilmeal exporters will also be able to find out what made its competitor's products superior.

"Indian exporters can find out whether our competitors' products are preferred because of low prices, high quality or any other factor and try to make changes in its products accordingly." Chhabra said that Indian oilmeal industry held a lot of promise because the oilseeds are not genetically modified. "This is India's strong point and the industry should try to cash in on this."