Export of Oilmeals down by 38% April - November 2015
Capital Market The Solvent Extractors' Association of India has compiled the export data for export of oilmeals for the month of November 2015. The export of oilmeals during November 2015 is reported at 112,081 tons compared to 189,032 tons in November 2014 i.e. down by 41%. The overall export of oilmeals during April-November 2015 is reduced by 38% compared to last year and reported at 895,646 tons compared to 1,452,105 tons during the same period of last year and 2,602,966 tons for the period April-November 2013. Soybean crushing is very much reduced due to continuous disparity and high price of domestic market affecting overall domestic availability of both oils and meals. The export of soybean meal is at a historical low during current year and reported 55,889 tons during the first eight months of the financial year 2015-16 compared to 250,904 tons in the previous year. Similarly rapeseed meal export is also reduced to 1/3rd of last year. The capacity utilization is at the lowest. Industry is passing through very tough time and many plants are close down or operating at very low capacity due to disparity in crushing and export.
Reasons for decline :
1.High price of soybean in domestic market v/s lower realization for meal and oil resulted in to drastic fall in crushing and export of soybean meal.
2.The export to Japan, Iran, Thailand, Indonesia, Taiwan and Vietnam drastically reduced due to disparity in export in these regions against severe competition from other origins including China and Argentina.
3.India lost Vietnam market for soybean meal due to stiff competition from other origins and increased availability from domestic crushing of imported soybean.
4.On wake of lifting sanctions, Iran shifted soybean meal buying from India to another origins. Currently India is out priced by US$ 100 against other origins in Iranian market.
5.Japan was big importer of Indian soybean meal being non GMO, however now started using GM soybean meal and buying from other origins.
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