Oilmeal exports see 60% y-o-y decline

BANGALORE: India's oilmeal exports have seen a whopping 60% year-on-year decline due to the impact of the global economic recession and non-availability of adequate meal. Exports during the four months ended June 30, 2009 were placed at 7.6 lakh tonne and that compared with 19 lakh tonne (1.9 million tonne) during the same period in the year-ago period.

"Traditionally, the first four months of every financial year are lean months, but global offtake has declined," said BV Mehta, executive director of the Solvent Extractors Association of India.

However, even as the oilmeal exports recorded a decline in the first four months of the current year, the silver lining was the increase in offtake by China which stood at a 4% year-on-year rise. Chinese imports of Indian oilmeal stood at 1.4 lakh tonne against 1.3 lakh tonne. Other key importers which reported a decline in offtake include Japan, South Korea and Indonesia.

In case of Japan, it stood at 84,493 tonne from 2.2 lakh tonne, while it was 1.1 lakh tonne from 2.9 lakh tonne in case of South Korea. Exports to Indonesia for the four-month period were placed at 65,820 tonne as against 1.5 lakh tonne in 2008.

Traders and analysts are now hoping that the kharif soyabean crop is robust to ensure that exports bounce back. "The market is showing signs of revival. We hope to have a good soyabean crop. If that happens and the exports revive, fortunes will certainly change," Mr Mehta added.