MUMBAI (Commoditiescontrol) – India soymeal exports have continued to slide lower in the last seven months due to soft tone in international prices and ample availability of soybean globally.
According to the Mumbai based industry body - the Soybean Extractors' Association (SEA) robust pace of soybean crushings and ample soybean supplies both in the northern and the southern hemisphere kept world market prices of soya meal under pressure and sharply below the year earlier levels.
Impact of which are clearly prevelant in Indian soymeal exports. During the period April-October 2015, soymeal exports have declined as compared to year ago level.
According to data released by SEA, the export of oilmeals have dropped by 40 per cent from a year ago period due to reduced crushing parity and high prices prevailing in the domestic market, thus affecting the availability of both oils and meals locally.
Export of soybean meal during April-October 2015 have dropped to 46,980 metric tonnes, ie almost 67 per cent from the same period a year ago. Adding to that, rapeseed meal has recorded a dip of around 60 per cent y-o-y. Except for ricebran, all other oilmeals have recorded drop in exports.
The 7 month period starting April-October 2015, saw a sharper fall in exports, than the same period ending September 2015. The period saw a 40 per cent fall in exports, as against 29 per cent during the last six months.
The y-o-y data for the financial year (FY) 2014-15 has also shown a fall from the previous FY ie 2013-14. Export of oilmeals during the current FY has decreased 43 per cent, compared to a year ago.
Interestingly, exports of rapeseed meal has increased almost 17 per cent, while that of ground nut and castor seed meal has dropped 8 per cent and 14 per cent, respectively.
Currency movement played its part in pushing down the exports. Indian rupee has depreciated against the US dollar during June to September period. However, in October the domestic currency has appreciated, which pushed the average free-on-board (FOB) price for Soybean, Rapeseed and Groundnut Meal hihher. On the other hand, appreciating rupee has squeezed the FOB prices for Ricebran and Castor Seed Meal. Apparently, the fall in exports was aggravated by a stronger Indian rupee during October 2015.
Meanwhile, the capacity utilization is at the lowest and many plants have closed operation due to disparity in crushing and export. It is to be noted that among the major importers of oilmeals, Thailand, Taiwan, Japan and Myanmar have recorded steep decline during the six monthly period of April-September, 2015 compared to same period a year ago. However, South Korea, Vietnam and Oman have shown rise in imports, having a wide range of diversity, from 0.68 per cent to as high as almost 75 per cent.
Moving further, exports during April-October 2015 from all major ports have taken a downturn, as was for the previous months. Except for Kolkata port, all other ports have recorded steep decline. These include Kandla, Mumbai JNPT, Pipavav and Mundra ports, to name a few.
(By Commoditiescontrol Bureau; +91-22-61391523)