Soyameal exports during the October-June period of the oil year 2021-22 fell sharply by about 70 per cent to 5.63 lakh tonnes (lt) compared with 18.69 lt in the same period a year ago. This was on account of the Indian meal being outpriced in the international market and also due to reduced crushings resulting in lower availability for shipments.
Crushing down
Soyabean crushing during October-June was down 26 per cent at 60 lt compared with 81.5 lt a year ago as farmers held back their produce expecting higher prices. A total of 62.94 lt of the estimated soyabean crop of 118.89 lt has been crushed during October-June. The stock with traders, crushing units and farmers is pegged at 48.17 lt, according to the latest data released by the Soyabean Processors Association of India (SOPA).
However, the domestic demand from the feed sector and food segment has witnessed an increase over the same period last year. The offtake from the feed industry is likely to improve over the past couple of months on softening trend in bean prices. Total domestic offtake during October-June was up marginally at 41.50 lt compared with 41.25 lt in the same period a year ago.
Imports increase
Soyabean is one of the major ingredients used in livestock feed along with corn. Interestingly, during the October-June period, the imports of soyabean meal by the livestock feed sector rose to 4.53 lt against 0.15 lt in the same period last year.
DN Pathak, Executive Director, SOPA, attributed the weak export performance of the Indian soyabean meal to higher domestic prices. The Indian soyameal is expensive by at least $150 per tonne compared with other origins, Pathak said.
Though the Indian soyameal prices have cooled down to around ₹52,000 per tonne levels, it is still considered expensive in the world market. Soyabean prices have eased on global cues and a rise in the area under kharif after rains lashed key producing regions of central India. Pathak expects soyabean prices to come down further on the sowing gathering pace. The latest figures by SOPA have pegged the soyabean acreage in the current kharif season at 70 lakh hectares as on July 6.
The offtake from the food sector stood at 5.95 lt, an increase of about 31 per cent over 4.55 lakh tonnes a year ago. This increase in the meal for food consumption is driven by the increased demand for protein products from health-conscious consumers.