Soyameal exports decline by 85% in 7 yrs: Assocham

Rich harvest of over 12 million ton soybean is expected

Farmers engaged in soy cultivation are highly distressed as India’s soyabean meal exports have dropped drastically by about 85% from record level of 4.24 million tonnes (MT) during fiscal year (FY) 2008-09 to a meagre 0.64 million ton in 2014-15, noted a just-concluded study by apex industry body ASSOCHAM.

Looking at near normal monsoon, the country is expected to reap rich harvest of over 12 million ton soybean meal putting further pressure on the domestic prices as India has become globally incompetitive and import of soy oil continues to increase.

“This significant slump in soybean meal exports from India is largely on account of speculation and an unrealistic approach in handling established export markets,” according to the study titled ‘Soybean: Time to regain lost ground,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Madhya Pradesh is known as ‘Soybean bowl of India,’ accounting for lion’s share of 60% of total production followed by Maharashtra (30%), while Rajasthan, Andhra Pradesh, Karnataka, Chhattisgarh and Gujarat together account for remaining share of 10%.

“Soybean scenario in India is currently at crossroads due to erratic production, declining soybean meal exports and consequent idling of plants, poor soybean oil output while edible oil imports are growing and currently account for almost 60% of country’s total requirement,” said DS Rawat, national secretary general of ASSOCHAM while releasing the findings of the chamber’s study.

“Unless a targeted approach is initiated, India might permanently loose export market for soybean meal that has been so assiduously build over decades,” said Mr Rawat.

“Industry should adopt a pragmatic approach to revive lost markets on soybean meal export front,” he added.

A constant rise in edible oil imports into the country is another alarming aspect highlighted by the study prepared by the Agri-business division of ASSOCHAM.

“Edible oil consumption in India is currently growing at a compounded annual growth rate (CAGR) of three% thereby placing enormous burden and dependence on imports to meet current deficit of 10 million ton due to near stagnant domestic production at about 8 million against a requirement of 18 million.”