India’s Soymeal Exports To Jump As Drought Curbs Argentine Supply – Industry Officials
India, the largest soy exporter in the world, sends the majority of its soybean abroad, primarily to the United States, Sri Lanka, and South Korea. As per 4 industry officials, India’s soymeal exports could more than double in the 2022/23 marketing year, as drought hits the top exporter, Argentina, thereby lifting global prices and prompting buyers to turn to the south Asian country which is offering cheaper rates for the commodity.
Soybean crushing operations in India received a boost since the revival in the exports of animal feed. Also, the increased availability of soy oil from the crushing process could reduce imports of soy oil and palm oil by the world’s biggest vegetable oil buyer in the months to come.
Soymeal Exports From India
Officials said that oil mills have made contracts to export 160,000 tonnes of soymeal for shipments in January and another 100,000 tonnes for shipments in February. These shipments are mostly to Asian countries i.e. Vietnam, Bangladesh, Japan and Nepal.
Hemant Bansal, vice president, of oilseed crushing and refining at Patanjali Foods Ltd said “Exports demand for Indian soymeal has been improving since it is cheaper than supplies from Argentina.” “Asian buyers are saving on freight as well due to the proximity.”
According to Bansal, India could export 1.5–2 million tonnes of soymeal in the current marketing year, up from 644,000 tonnes in the previous marketing year.
According to the industry group Solvent Extractors’ Association of India, Soymeal Exports from India increased 223% to 325,409 tonnes in the first quarter of the 2022–23 marketing year, which began on 1st October’22.
The price of soybean meal increased on the global market as Argentina’s production was predicted to drop from 48 million tonnes to 41 million tonnes in 2022–2023 due to drought. As per an exporter, Manoj Agarwal, the recovery in soymeal exports has helped the soybean crush margins, but the recent correction in soyoil prices threatens to eliminate them.
A Mumbai-based global trade house said that soy oil and palm oil imports might decline in the coming months due to an improvement in local supplies. Due to higher imports in the December quarter and rising soy oil supplies from domestic soybean crushing, he continued, the availability of edible oil has improved.
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