Soyameal export may dip 24% this season on sluggish demand

India's soyameal export may dip 24 per cent in the 2008-09 season ending this month, as poor demand abroad due to the global financial meltdown has hit domestic crushing of soyabean, according to an industry body.

According to Indore-based Soybean Processors Association (SOPA) Co-ordinator Rajesh Agrawal, the country may export only about 37 lakh tonnes this season, compared with 48.8 lakh tonnes in 2007-08.

Industry sources said the export would nosedive because of sluggish demand from overseas buyers, which also affected domestic crushing of soyabean, resulting in the making of less soyameal — which is mainly used for feeding animals.

Reflecting the downward movement, soyameal export in August slumped by 40 per cent to 1.27 lakh tonnes from a year earlier, according to data available with SOPA.

The sources said the global financial crisis had prompted some overseas traders to do only "need-based buying" while those in some other countries had piled up stocks for future use when prices were low, causing the decline in demand later this season.

However, Agrawal expressed confidence that export would bounce back in the coming months as demand for animal feed is likely to revive.

Moreover, much depends on the monsoon situation, as it will determine soyabean production and subsequent the supply of soyameal, Agrawal said. Industry sources said soyabean production may reach at least 9.5 million tonnes.

The export prices of soyameal this season have witnessed some fluctuations. While prices rose from $289.83 a tonne in October to a seasonal peak of $460.13 in June, the rates again declined to $428.04 a tonne in August.