Soyabean Meal Exports May Increase By 10-15%

Mumbai: Higher freight cost and hoped lower output of soyabean in the US and China may keep the Indian soyameal exports at an advantage. Exports of soyabean meal are hoped to be higher by 10-15 per cent with projections of higher crop production. India is hoped to produce 15 per cent higher than 7.6 million tonnes (mt) produced last year. China is projected to produce 14.5 mt compared with 16.2 mt while the US is hoped to produce 71.5 mt compared with 86 mt last year. Indian soyameal prices are ruling at $300 per tonne (f.o.b.) at west coast of India.

Argentina meal is at ruling at $235 per tonne (f.o.b.). Last year, Indian soyameal prices ranged from $180 to $250 escalating from the beginning of the season. The landed cost of soyabean meal to South Asian countries from India is $40 per tonne higher compared to $100 from Argentina due to higher freight cost. India not only derives benefit due to proximity but also Indian quality contains 3-4 per cent higher protein. Despite a significant fall in meal exports in the past five months, good demand for soyabean meal is seen from the buoyant Chinese market as it has a benefit of $50 per tonne on direct import of meal against import of soyabean seeds. Soyabean meal exports for April to August were lower at 5.38 lakh tonnes from 7.96 lakh tonnes in the same period of last year.