NEW DELHI (Commoditiescontrol) - The government is likely to increase the incentive given to soymeal exporters in the form of export credit to 10% from the current 7.5% to support exports and boost domestic prices.
The industry has been demanding more incentives on the exports of the soybean cake to make it competitive in global markets, as per sources.
Export demand for Indian soybean cake has been weak due to its higher prices as compared to competitors. This had resulted in high domestic supplies and subdued prices.
Currently, free on board price of soymeal is $500 per tonne at Indian ports.
Soymeal exports in 2017-18 (Oct-Sep) have been pegged at 1.3 million tonnes, down from 2 million tonnes last year, SOPA said.
When prices were competitive in global markets, India was exporting to around 4 million tonnes of soymeal annually.
Soybean is a crucial kharif crop and accounts for 40% of India's oilseed basket. Soymeal, a derivative of soybean, is primarily used as a cattle feed.
Domestic prices are rising because of reports of lower crop this year, traders said.
The latest survey by the apex industry body, the Soybean Processors' Association (SOPA), estimates India's soybean output at 8.35 million tonnes for the harvesting season 2017-18, about 24 percent lower than 10.9 million tonnes reported in the previous year.
SOPA earlier had estimated India's soybean output at 9.15 million tonnes in its first survey in October.
In contrast, the Union Ministry of Agriculture has pegged India's total soybean output at 12.22 million tonnes in its first advanced estimate for the season 2017-18, down from 13.79 million tonnes in its fourth advanced estimate for 2016-17.
(By Commoditiescontrol Bureau; +91-22-40015516)
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