Oilmeal exports in April-January (2022-23) at a record high due to spike in shipment of rapeseed meals

Due to record shipment of rapeseed and soyabean meals, key ingredients in cattle feed, India’s exports of oilmeals rose by 70% to 3.29 million tonne (MT) during April-January (2022-23) compared to a year ago.

Industry sources said that the exports of oilmeals after extraction of oil from  rapeseed mustard, soyabean, rice bran and castor seeds in the current fiscal is likely to touch a record 4 MT because of robust global demand due to competitive prices offered by India.

South Korea, Vietnam, Thailand, Bangladesh and Taiwan are the key export destinations of oilmeals.

According Solvent Extractors’ Association (SEA) of India, the exports of rapeseed meals touched a record 1.91 MT in the first ten months of the current fiscal while surpassing the previous record exports of 1.24 MT in 2011-12.

According to BV Mehta, executive director, SEA, currently the country is supplying rapeseed meal to South Korea, Japan, Vietnam, Thailand and other Far-East countries at $250/tonne (fob) while meal sourced from Germany is quoted at $428/tonne. “The shipment of oilmeals from India takes about 8-10 days to reach Far-East countries while shipment from Europe takes about three weeks or more,” Mehta told FE.

He said the better realisation from rapeseed (mustard) oil and export of rapeseed meal has given a boost to domestic prices of mustard seed besides resulting into record sowing area under mustard this season.

Area under mustard in the current rabi season (2022-23) has been reported at a record 9.8 million hectare which is 64% more than last five years’ average sown area of 6.4 MH. In the 2021-22 season, mustard sown areas stood at 9.1 MH.

The agriculture ministry has projected mustard seed production for the current crop year (2022-23) at a record 12.81 million tonne (MT) against 11.96 MT of production estimated in previous crop year.

The export of soyabean meal rose by 77% to 0.55 MT during April-January of 2022-23 on year. Officials say that the fall in the domestic soyabean prices to around `4,700/quintal from a level of `7,640/quintal prevailing in April 2022 encouraged larger crushing of the crop and better price parity.

Until last week, soyabean meal price from Argentina was quoted at $619/tonne while India’s soyabean meal was quoted at $585/tonne. The soyabean seed production in the current crop year is estimated at a record 12.81 MT against 11.96 MT in the 2021-22 crop year.

The soyameal from India is largely exported to South East Asian countries because of logistical proximity and smaller lots size. “Indian soyabean meal, being non-GMO, has an advantage and is preferred by certain European countries and the US,” according to a SEA note.

This article has been republished from The Financial Express.