India's Oilmeals Export Down 36% On Year In FY22

The Solvent Extractors' Association of India has compiled the export data for export of oilmeals for the month of March, 2022 provisionally reported at 242,043 tons compared to 322,850 tons in March 2021 i.e. down by 25% mainly due to decline in export of soybean meal. The overall export of oilmeals during Apr.'21 - Mar.'22 decreased and reported at 2,373,744 tons compared to 3,689,483 tons during the same period of previous year i.e. down by 36%. In term of value, in-spite of increased in unit realization price, sharp drop in earning due to lower export tonnage mainly in soybean meal down by 76% and rapeseed meal down by 22% and provisionally reported earning of Rs.5,600 crores in 2021-22 compared to Rs.8,866 crores in previous year, down by nearly 37%.

In last financial year 2021-22, export of oilmeals during Apr.'21-Mar.'22 is down by 36% mainly due to lesser export of soybean meal. Soybean crush margins in India are currently squeezed by pressure on meal prices and relatively high price expectation of farmers for soybean seed which is currently quoted over Rs.7,600 per quintal. Currently India is outpriced for soybean meal export as Ex. Kandla quoted at US$ 840 against Brazil origin US$ 574 & Argentina US$ 586 ex. Rotterdam per ton. India is unlikely to be competitive for export in near future due to high price of domestic soybean seed. Crushing of soybean is low as farmers are holding stock in anticipation of higher prices as seen by them in last year. This is also pushing higher import of crude soybean oil in to India.

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