"Sopa has on its own given an undertaking to South Korea to maintain quality of exports following which Seoul has agreed to import five lakh tonnes soymeal from India," Midex Overseas managing director Narottam Somani told PTI.

The contract to export five lakh tonnes comes at a time when India is faced with the problem of a lower demand this season (October 1998-September 1999) from China.

China was unlikely to buy large quantities of soymeal this season and it would have an effect on total soymeal exports from the country, Somani, also a Sopa executive, said.

Besides, Indian soymeal exporters are also faced with the prospects of China raising duty on the commodity's imports.

India had been able to garner the South Korean demand despite exporters from US cutting down the price.At an average $160 a tonne, including freight charges, Indian soymeal was priced at least $10 cheaper Somani said.

The South Korean order also follows an assurance by a commerce ministry delegation, led by joint secretary SM Acharya, to oilmeal exporting countries that complications in quality of shipments would not recur.

Somani said South Korea had offered to buy five lakh tonnes only after they were satisified with the initial shipments. "They were impressed with the quality of our shipments," he said.

While assuring exporters of quality shipments, government had also asked oilmeal importers to take all care to stick to quality parameters while exporting oilmeals. The measures followed a setback to oilmeal exports after a few consignments ran into quality problems.

A shipload of soymeal to south-east asia was found to have had complications due to high moisture content in one small consignment. The problems arose as shippers often sent mixed consignments.

However, the solvent extractors'association said unseasonal rains during november-december last year had led to high moisture content in soyabean crop. It also blamed lack of post-harvest technology and poor storage facilities for damage to the consignment.

Besides, an inspection agency has been set up now to check the quality of soymeal exports. Soymeal exports from India were hit last season as Brazil and the US, the main competitiors, moved in fast to cash in on the setback.

Industry sources contended that buyers also made India a scapegoat and blew the matter out of proportions to escape from default on their payment.

With oilmeal prices crashing on excess supply last season, Indian exporters woke up to the reality and began cocentrating on quality exports.

Soymeal prices in particular have crashed to $125 a tonne now from a high of $320 a tonne during April 1997. Despite prices crashing and South Korea's purchase, soymeal exports were expected to be around 27 lakh tonnes only this season against 30 lakh tonnes last season,Somani said.