Lifting sanctions on Iran won't help India's oilmeal exporters

Iran is buying from alternative sources such as Argentina and Brazil where the oilmeal is cheaper by $100 a tonne

While ending economic sanctions on Iran opens a plethora of opportunities for agriculture exports to that country, the shipment of oilmeals might remain subdued owing to a lack of competitiveness.

India’s oilmeal exports to Iran, once the largest importer of the cattle feed, nose-dived by 91 per cent to 9,050 tonnes during the April-June quarter of the current financial year compared from 102,275 tonnes in the year-ago period.

“Being around $100 a tonne cheaper than India, Iran started buying oilmeals from alternative sources such as Argentina and Brazil via the Dubai port. So, lifting of economic sanctions on Iran would not help India unless the price becomes competitive,” said B V Mehta, executive director, Solvent Extractors’ Association.

India enjoys geographical advantage for shipment of oilmeals to Iran with four-five days of delivery time. However, exports to Iran remained lacklustre.



Edible oil producers have asked the government to raise the import duty on vegetable oil, to support domestic price which would proportionately raise producers’ realisation.

Oil producers recover manufacturing costs neither from edible oil nor oilmeals. Therefore, crushing activities have declined with a large quantity of seed remaining uncrushed this season resulting in lower production of oilmeals.

“Unless the government raises the import duty on vegetable oil, meal exports would not pick up,” said Mehta.