Oilmeal exports declined by 36 per cent in terms of volume, and by 37 per cent in terms of value during 2021-22.
According to Solvent Extractors’ Association (SEA) of India, export of oilmeals fell to 23.73 lakh tonnes (lt) during 2021-22 from 36.89 lt in 2020-21. Provisional data indicated that India’s export earnings from oilmeals declined to ₹5,600 crore in 2021-22 from ₹8,866 crore in 2020-21.
BV Mehta, Executive Director, SEA of India, said the sharp drop in earning is due to lower export tonnage, mainly in soyabean meal (down by 76 per cent) and rapeseed meal (down by 22 per cent), in spite of an increase in unit realisation price.
Soyabean meal
India exported 3.72 lt of soyabean meal during 2021-22 as against 15.64 lt in 2020-21, down by 76.21 per cent. The export earnings from soyabean meal declined to ₹2,206.70 crore in 2021-22 against ₹5,825.40 crore in 2020-21, down by 62.11 per cent. The average CIF price for export of soyabean meal increased from $781 a tonne in April 2021 to $888 a tonne in March 2022.
Mehta said soyabean crush margins in India are currently squeezed by the pressure on meal prices and the relatively high price expectation of farmers for soyabean seed. The price is currently quoted above ₹7,600 a quintal, he said.
India is out-priced for soyabean meal export as ex-Kandla price is quoted at $840 a tonne against $574 a tonne for Brazil-origin and $586 a tonne for Argentina-origin (ex-Rotterdam).
“India is unlikely to be competitive for export in near future due to high price of domestic soyabean seed. Crushing of soyabean is low as farmers are holding stock in anticipation of higher prices, as seen by them last year. This is also pushing higher import of crude soyabean oil into India,” Mehta said.
India exported around 2.25 lt of organic soyabean meal to the US in 2020-21. However, this figure reduced to just 65,000 tonnes for 2021-22, mainly due to high local prices versus international prices.
There is good demand for soyabean meal from European countries as India produces only non-GM soyabean meal. In 2020-21, India exported nearly 5 lt of soyabean meal to European countries. But it fell below 1.20 lt in 2021-22.
Rapeseed meal
The overall export of rapeseed meal fell to 8.66 lt in 2021-22 from 11.13 lt in 2020-21. Mehta said that South Korea, Thailand, Vietnam and Bangladesh bought less during the year.
Export earnings from rapeseed meal increased to ₹2,035.45 crore in 2021-22 from ₹2,019.20 crore in 2020-21. The average CIF price of rapeseed meal increased from $311 a tonne in April 2021 to $326 a tonne in March 2022.
Ricebran extraction
Mehta said ricebran extraction improved in 2021-22 due to larger demand from Vietnam and Bangladesh. India exported 7.49 lt of ricebran extraction, earning export revenue of ₹983.90 crore, in 2021-22, as against 5.75 lt and ₹756 crore in 2020-21.
Major importers
South Korea was the major importer — 6.43 lt (8.05lt) — of Indian oilmeals during 2021-22. This included 3.22 lt of rapeseed meal, 2.77 lt of castorseed meal, and 43,788 tonnes of soyabean meal.
Vietnam imported 6.09 lt of oilmeals (5.39 lt), including 5 lt of ricebran extraction, 1.03 lt of rapeseed meal, 4,788 tonnes of soyabean meal, and 781 tonnes of groundnut meal.
Thailand imported 1.51 lt of oilmeals (2.03 lt). This included 1.37 lt of rapeseed meal, 9,816 tonnes of castorseed meal, 3,448 tonnes of soyabean meal, and 1,367 tonnes of ricebran extraction.
Bangladesh, which sources rapeseed meal and ricebran extraction from India, imported 3.57 lt of oilmeals (4.5lt) during 2021-22. This consisted of 1.61 lt of ricebran extraction, 1.95 lt of rapeseed meal, and 229 tonnes of soyabean meal.
Taiwan imported 92,310 tonnes (1.34 lt) of oilmeals. This included 66,208 tonnes of castorseed meal, 21,124 tonnes of rapeseed meal, 4,007 tonnes of soyabean meal, and 971 tonnes of groundnut meal.
India exported 65,677 tonnes (2.27 lt) of oilmeals to the US in 2021-22, consisting of 64,378 tonnes of soyabean meal and 1,284 tonnes of rapeseed meal.