MUMBAI (Commoditiescontrol) - Finally, there is something to cheer about this festive season for the domestic soymeal crushers. This fact emanates from the latest exports data released by Solvent Extractors Association of India (SEA), which has pegged India's soymeal exports at 6,886 tonnes, up almost seven fold over previous month.
While currency devaluation could have assumed that larger importance, but the fact that the country has managed to create a niche for its product assumes greater importance.
The domestic currency, Rupee (monthly average) has weakened from 62.64 to a US dollar in April this year to 66.17 as of September 2015. A cheaper currency makes exports competitive to other sources, in this case Argentina.
However, India has managed to create niche for its product in global markets which has aided to this growth. Globally the demand for non-
GM (genetically modified) products have increased, particularly from Japan and Europe.
According to the report published by Rabobank - middle of this year, had suggested that the soymeal exports would fall. However, the report pointed out that India's declining soymeal exports could drive a sustainable niche for the country in supplying to global non-GM market.
India is among the most important suppliers of soymeal and corn to South East Asia and also a key supplier of non GM soymeal to Europe and Japan, which are the major markets for such soymeal, the report had suggested.
About 12 per cent of the world's soymeal production originates from conventional soybeans (non-GM) but the actual availability of non-GM soymeal at the world markets is much smaller as the beans are often comingled and cannot be separated in the supply chain.
India's oilmeal exports have been declining for three years. After a record 5.6-million tonnes export in 2011-12, shipments fell to 4.85 MT in the following year and 4.33 MT in 2013-14.
Meanwhile, South East Asia's demand for soymeal is set to grow by 68 per cent by 2020 and traditionally India has been its largest supplier, providing 36 per cent of soymeal imports in 2008.
(By Commoditiescontrol Bureau; +91-22-40015533)
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