The nation's soymeal exports are expected to fall to a decade low in the current financial year, as higher local prices have rendered Indian supplies uncompetitive in the international market.

Exports are likely to remain below 2 million tonnes in the year through March 2015, compared with around 2.8 million tonnes in 2013-14, said Raju Choksi, vice president of agriculture commodities at Anil Nutrients.

BV Mehta, executive director of the Solvent Extractors Association, said soymeal exports would definitely be lower this year, but his estimate is higher than that of Choksi. "According to our estimate, it will be around 2.5 million tonnes," he said. "Higher soybean seed prices have made Indian soymeal uncompetitive in the world market. Moreover, this year the global supply is on the higher side and there is ample supply of soybean and soymeal in the world market," he added.

Soymeal, the residue left after extracting oil from soybean, is widely used in animal feed. It has a major share in India's total oilmeal exports, but for the past couple of years, that has declined. Soymeal exports fell 19 per cent in 2013-14, quicker than the previous year's 10 per cent drop.

Soymeal exports during April-July 2014, or the first four months of this fiscal year, totalled 107,381 tonnes, or just about a fifth of the year-earlier level, according to data available from the Solvent Extractors Association of India.

"Lack of rains in the last fortnight is putting the soybean crop which is in the flowering stage under stress," said Choksi of Anil Nutrients, which supplies cattle feed, feed supplements and fertilizers. "Rainfall in the coming week and one spell in mid-September would be crucial for this year's crop."

Choksi said a majority of buyers in Asia is covered for deliveries up to November and December. "In the face of a bumper production in the US and South America, Indian exporters are going to find it difficult to compete with these origins."

According to the Central Organisation of Oil Industry Trade, crop available for crushing in 2013-14 was 89.80 lakh tonnes, compared with 97 lakh tonnes in 2012-13.

Source:- economictimes.indiatimes.com