Weak global demand pulls down oilmeal exports.

New Delhi: The declining trend in country’s oilmeal exports continued for consecutive six months in April mainly because of sluggish global demand particularly from Vietnam and China, strengthening rupee and lower domestic crushing.

According to a data released by Solvent Extractors' Association of India (SEAI) on Wednesday, the country’s oilmeal exports went down by close to 17% in April to 2.04 lakh tonne against 2.38 lakh tonne achieved during the same month last year. The exports were 8.9% lower compared to last month’s figure.

Soyameal exports, which constitutes bulk of the total oilmeal exports from India, dropped by close to 40% to 60,264 tonne in April from 1.06 lakh tonne a year ago.

The country's oilmeal exports in 2009-10 had dropped by 41% to a five-year low of 3.2 million tonne.

Bumper production of soyabean in Brazil and United States have also been attributed to decline in exports of soyameal from the country.

Meanwhile, Indore-based trade body Soyabean Processors Association of India (SOPA) also said the export of soya meal fell by 31.45% to 57,507 tonne in April 2010 from 83,894 tonne a year earlier. Figures of SEA and SOPA usually vary because of different source of data collection.

In the current oil year that started in October, exports went up only in October by 136%, after which it had been steadily declining. Exports during October 2009 to April 2010 also dropped sharply by more than 41% to 1.56 million tonne as against 2.66 million achieved in the previous year.

SOPA last month said that soyameal exports during March 2010 also correspondingly went down by more than 23% to 1.69 lakh tonne from 2.22 lakh tonne achieved during the same month last year. Vietnam, Thailand, Indonesia and South Korea are the key export destination for Indian soyameal Many importing countries including China, Europe, Malaysia and Middle East have not been placing orders for import of soyameal, a key animal feed, industry officials said.

Source : Financial Express