Iran turns saviour for pricey Indian soyameal exports

Iran has turned out to be the saviour for the Indian soyameal exports during the oil year 2023-24 ending September.

Strong buying from Iran is likely to push up soyameal exports during oil year 2023-24 to 21 lakh tonnes, an increase of 14 per cent over previous year’s 18.36 lakh tonnes, according the Soyabean Processors Association of India (SOPA), the apex trade body.

Till July-end India’s exports of soyameal stood at 19.24 lakh tonnes, up from 16.6 lakh tonnes a year ago.

Vietnam cuts buys

Iran has turned out to be the biggest buyer this oil year, while Vietnam, the largest buyer last year, has reduced purchases sharply due to higher prices.

Shipments to Iran during the oil year 2023-24 starting October till July end rose to 4.12 lakh tonnes over 12,000 tonnes a year ago.

Strong buying from Iran has prompted SOPA to increase the soyameal export projections to 21 lakh tonnes for 2023-24 oil year from its earlier estimates of 19.5 lakh tonnes. During 2022-23 oil year, soyameal exports stood at 18.36 lakh tonnes.

$100/t expensive

“Iran has been a face saver for Indian soyameal exports,” said D N Pathak, Executive Director, SOPA. The increase in exports is despite the fact that Indian soyameal has been expensive in the world market by about $100 per tonne, he said.

Shipments to United Arab Emirates have also increased this year to 3.71 lakh tonnes till July end over 47,803 tonnes a year ago. Nepal has also seen an increase in exports at 1.76 lakh tonnes from previous year’s 1.18 lakh tonnes.

However, shipments to Bangladesh have declined marginally to 3 lakh tonnes from 3.35 lakh tonnes a year ago. The biggest decline in shipments was to Vietnam at 9,649 tonnes from previous year’s 5.05 lakh tonnes on higher domestic prices.

Bearish trend

Soyabean has been on a bearish trend globally, while Indian exports have been uncompetitive because of higher domestic prices. Soyabean crushing during the oil year 2023-24 is expected to be higher at 120 lakh tonnes over 115 lakh tonnes a year ago. The domestic consumption from the feed sector was marginally lower at 56 lakh tonnes (56.65 lakh tonnes), while the offtake from the food segment was also lower at 6.65 lakh tonnes (7.15 lakh tonnes).

The market arrivals of soyabean stood at 107 lakh tonnes till the end of July in the oil year 2023-24 starting October, higher than 106 lakh tonnes a year ago.

The carry-forward stocks for the 2024-25 oil year starting October are expected to be around 11.16 tonnes against 24.07 lakh tonnes a year ago.

Soyabean production during the year was lower at 118.74 lakh tonnes over 124.11 lakh tonne a year ago.