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Soybean exports to fall for 2nd month in a row

Soybean exports to fall for 2nd month in a row
TNN | Updated: Apr 15, 2017, 06.45 AM IST

INDORE: Soybean meal exports are expected to fall for a second month in a row in April due to higher prices and reduced demand from overseas buyers.

Concerns over the poor quality of Indian soybean meal have also made buyers drift away, exporters said. Early in March, Pakistan banned imports of soybean meal from India because consignments were allegedly infested with fungus.

Madhya Pradesh is the largest soybean producing state in the country. Several big players operate from the financial capital of the state, Indore.

According to Soybean Processors Association of India (SOPA), the country had exported 1,80,884 tonnes in March against 2,07,977 tonnes in February. Indian soybean meal has been out-priced in the international market as prices have risen by about $20-$30 per tonne.

DN Pathak, executive director, SOPA said, "Exports of soybean meal have fallen in March and is expected to drop again in April as there are very less takers for it."

Leading soybean meal exporters from Indore expect April's exports to fall to about 1.5 lakh tonnes.

Indian soybean meal was quoted at about $400 per tonne in the international market, industry participants said.

Market experts said a restricted supply of soybean in local mandi's has pushed prices up.

Pathak said, "Soybean meal prices from rival countries such as Brazil and the United States are lower in the global market due to higher production and sufficient availability."

Poor quality of Indian soybean meal has always worried exporters as global buyers demand a high discount for Indian soybean meal due to its inferior quality when compared to other producers.

India is the leading exporter of soybean meal to South East Asian countries but due to higher prices, buyers have shifted to suppliers from Argentina and Brazil.