Once a large exporter of oil meal, India would soon begin
imports to meet rising local demand from bird and animal feed divisions due to lesser
availability from domestic mills. About 15,000 oilseed devastating units have
built 36 million tones edible oil production capacity over the previous several
years linking a speculation of several thousand cores. These units, however,
have been working at just 20-30 Per cent of installed capacity due to downbeat
crushing parity. In fact, import of refined oil works out cheaper due to high
minimum support price (MSP) flat by the government and continued low edible oil
rates. India is presently out priced by $150 a ton in the globe oil meal markets.
As a result, the production of local oil meals continued low. Of about 38.5 million tons of oilseed per oil bearing materials production in 2014-15 (Nov – Oct), oil meals were procured to the tune of 26.20 million tones. Interestingly, both oilseed and meal production have dropped in India, albeit slightly, since previous year from the range of 41.7 million tones and 27.49 million tons correspondingly.
“Seed crushing mills in India, therefore, have reduced their operating capacity to the lowest in many years due to declining rates of oil and meals. Leaving by the drift, it looks like India would soon begin with import of oil meals from the globe market,” said Atul Chaturvedi, Chief Executive Officer (CEO) of Adani Wilmar Ltd, the producer of Fortune brand edible oils.
Lesser local production of soybean and rapeseed jacked up the rates in local market versus lesser realization for meal and oil resulted in to harsh fall in crushing and export of soybean meal and rapeseed meal. Also, meal exports to Japan, Iran Thailand, Indonesia, Taiwan and Vietnam drastically reduced due to difference in export in these regions against severe struggle from other origins including China and Argentina.
In previous 2 years, India’s major importers have moved from importing oil meals to oilseeds for local crushing that lessen the import demand from India. Ban on meal import from China joined with Japan’s roll to import genetically modified (GM) seed meal from non-GM seed meal also strike India’s exports poorly.
With about five million tonnes of exports, India’s share in the world oil meal markets was hanging about 5-6% in 2012-13. But, meal exports started falling since then to witness 1.99 million tons (<2 % of market share) in 2014-15. India’s overall oil meal exports reported a sharp fall of 51% to a mere 1 million tonnes amid Apr – Jan. of FY 2016 as compared to 2.05 million tons for the same time previous year and 3.65 million tons in 2013-14.
Data compiled by the apex industry body the Solvent Extractors’ Association (SEA) demonstrated India’s oil meal exports fallen by an amazing 91% in Jan. 2016 to the lowest ever at 17,243 tons compared to 185,654 tons in the same month previous year.
Meanwhile, alarming falls of oilseed production and crushing in India are going along with blooming import demand for vegetable oils and have brought oil meal exports from India almost to an idle. The edible oil industry therefore, has begged with the government for dipping the import duty to 5-10% from the present 30% on high oil content oilseeds like rapeseed/mustard (canola) and sunflower seed. Source: http://www.business-standard.com/article/markets/india-to-start-oilmeal-import-soon-as-domestic-production-becomes-unviable-116020600151_1.html
As a result, the production of local oil meals continued low. Of about 38.5 million tons of oilseed per oil bearing materials production in 2014-15 (Nov – Oct), oil meals were procured to the tune of 26.20 million tones. Interestingly, both oilseed and meal production have dropped in India, albeit slightly, since previous year from the range of 41.7 million tones and 27.49 million tons correspondingly.
“Seed crushing mills in India, therefore, have reduced their operating capacity to the lowest in many years due to declining rates of oil and meals. Leaving by the drift, it looks like India would soon begin with import of oil meals from the globe market,” said Atul Chaturvedi, Chief Executive Officer (CEO) of Adani Wilmar Ltd, the producer of Fortune brand edible oils.
Lesser local production of soybean and rapeseed jacked up the rates in local market versus lesser realization for meal and oil resulted in to harsh fall in crushing and export of soybean meal and rapeseed meal. Also, meal exports to Japan, Iran Thailand, Indonesia, Taiwan and Vietnam drastically reduced due to difference in export in these regions against severe struggle from other origins including China and Argentina.
In previous 2 years, India’s major importers have moved from importing oil meals to oilseeds for local crushing that lessen the import demand from India. Ban on meal import from China joined with Japan’s roll to import genetically modified (GM) seed meal from non-GM seed meal also strike India’s exports poorly.
With about five million tonnes of exports, India’s share in the world oil meal markets was hanging about 5-6% in 2012-13. But, meal exports started falling since then to witness 1.99 million tons (<2 % of market share) in 2014-15. India’s overall oil meal exports reported a sharp fall of 51% to a mere 1 million tonnes amid Apr – Jan. of FY 2016 as compared to 2.05 million tons for the same time previous year and 3.65 million tons in 2013-14.
Data compiled by the apex industry body the Solvent Extractors’ Association (SEA) demonstrated India’s oil meal exports fallen by an amazing 91% in Jan. 2016 to the lowest ever at 17,243 tons compared to 185,654 tons in the same month previous year.
Meanwhile, alarming falls of oilseed production and crushing in India are going along with blooming import demand for vegetable oils and have brought oil meal exports from India almost to an idle. The edible oil industry therefore, has begged with the government for dipping the import duty to 5-10% from the present 30% on high oil content oilseeds like rapeseed/mustard (canola) and sunflower seed. Source: http://www.business-standard.com/article/markets/india-to-start-oilmeal-import-soon-as-domestic-production-becomes-unviable-116020600151_1.html
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INDIA'S
OILMEAL EXPORTS: ON SLIPPERY GROUND
|
||
|
Financial year
|
Quantity (million
tonnes)
|
Value (Rs crore)
|
|
2015-16*
|
0.96
|
1250
|
|
2014-15*
|
1.86
|
3169
|
|
2014-15
|
2.47
|
4300
|
|
2013-14
|
4.38
|
11510
|
|
2012-13
|
4.85
|
11810
|
|
2011-12
|
5.60
|
8425
|
|
2010-11
|
5.07
|
8300
|
Source: Solvent Extractors’ Association, * Apr – Dec period
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