Soyameal export projections cut by a fifth to 14 lt on weak global prices
As the Indian soyameal gets out-priced in the world market on falling global prices, the trade has revised its export projection downwards by over a fifth for the oil year 2023-24 ending September. “The prospects for export of soybean meal in the remaining period of this marketing year look slightly pessimistic as we are out-priced in the international market. We have, therefore, reduced the projected export of soyameal from 18 lakh tonnes (lt) to 14 lt for the period October 2023 to September 2024,” said D N Pathak, executive director, Soyabean Processors Association of India (SOPA).
Indian soyameal prices are expensive by about $80-100 per tonne on FOB basis compared to other origins. As a result of the price differential, the order books have been impacted, Pathak said. However, soyameal exports have been marginally higher during the October-January 2023-24 period at 6.09 lt as compared 5.68 lt in the same period last year. The demand, however, has been weak in the domestic market as the off-take from both food and feed sector has been lower than last year.
Offtake down
Feed sector consumption of soyameal stood at 24 lt during October-January as compared to 25 lt in the same period last year. Similarly, offtake from food sector was down at 3 lt during the period over 4 lt in the same period last year.
As a result of weak demand, the soyameal crushing has been sluggish and lower than last year. Soyameal crushing in October-January period was down at 42.5 lt as compared to 45.5 lt in the same period last year. However, the market arrivals have been higher during the period at 62 lt over 61 lt during the same period last year. Production of soyameal was lower at 33.54 lt (36.32 lt).
- Also read: Farm to Fork: The role of international trade agreements in shaping agricultural supply chains
Due to the weaker crushing demand the soyabean prices have slipped below the minimum support price levels of ₹4,600 per quintal. Modal prices of soyabean across various mandis of Madhya Pradesh ranged between ₹3,800-4,580 per quintal on Monday.