Drop in soyabean output may hit soyameal exports

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Published: December 13, 2019 2:39:01 AM

Last year during the same period, exports were close to 4.57 lakh tonne. In October, exports of soyabean meal stood at 63,000 tonne, against 1.31 lakh tonne a year ago in the same period while in November, it further slipped to 50,000 tonne, against 3.26 lakh tonne in the corresponding period, according to Sopa.

soyabean, soyabean production, soyabean output, soya meal export, exportExporters may have a poor year this time as exports look weak, owing to small crop size and insufficient supply in the local market.

A drop in soyabean output this year due to prolonged rains has adversely affected soyameal exports. Exports in oil year 2019-20 is estimated at 10 lakh tonne which is lower by 11.8 lakh tonne as compared to last year’s export of 21.79 lakh tonne .

According to data of the Soybean Processors Association of India (Sopa), exports of soyabean meal in the first two months of the new oil year, starting October and November, fell over 70% to just 1.13 lakh tonne.

Last year during the same period, exports were close to 4.57 lakh tonne. In October, exports of soyabean meal stood at 63,000 tonne, against 1.31 lakh tonne a year ago in the same period while in November, it further slipped to 50,000 tonne, against 3.26 lakh tonne in the corresponding period, according to Sopa.

Exporters may have a poor year this time as exports look weak, owing to small crop size and insufficient supply in the local market. Overseas shipments have fallen in October and November, according to Sopa. Madhya Pradesh is the largest soyabean producing state in the country with several large exporters of soyabean meal operating from Indore.

Sopa executive director DN Pathak said there could be a major decline in exports. Apart from a lower output, the lack of clarity in continuation of the incentive under the MEIS scheme is hurting export order bookings.

The director general of foreign trade (DGFT) has stopped giving 7% MEIS benefit for the export of soyabean meal with effect from August and de-activated the relevant link for online filing of claims. This is causing huge loss to exporters, Sopa stated earlier. Therefore, exports have become difficult, he said.

Sopa, which has projected a 20 % dip in soyabean output this year, sees a higher decline in soyameal exports due to these issues. “They (the government) are neither giving it, nor withdrawing it or denying it. From August 1, the government has stopped giving the 7% MEIS incentive. We have written to everyone, but there’s no response,” Pathak said. “Indian soyameal is expensive by over $100 per tonne when compared to our competitors. The 7% incentive, provided under MEIS scheme over the FOB value of the shipment, had helped the exporters offset the higher price in international market to some extent.” According to industry estimates, around 1 lakh tonne of soyabean meal went into domestic consumption collectively in October and November.

Higher prices of soyabean meal has also impacted sales in poultry sector that consumes a large section of meal.Poultry farms have said cost of feed has gone up by over 15% cent due to higher prices of ingredients, including soyabean meal.

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