India’s November oil meal exports jump 150% year on year

India’s oil meal exports in November rose by 150% on the year and 91% against the previous month to 407,193 tonnes, the second highest level seen in the current 2022-23 financial year, which runs from April to March, the Solvent Extractors Association of India (SEA) said in a release on Monday, December 19.

The firm increase came on the back of a strong performance seen in soy meal exports, which reached 164,075 tonnes in November, 282% more than a year ago and more than 300% against October’s volume of 40,196 tonnes.

Soy meal exports were seen as more attractive against domestic sales, as local soy meal prices fell to INR42,000 per tonne ($508 per tonne) following the drop in soybean prices.

Indian soy meal also became more competitive against international products such as Brazilian meal, with Brazil soy meal being quoted at $588 per tonne ex-Rotterdam versus Indian soy meal at $535 per tonne ex-Kandla as of December 15.

The lower-than-expected Argentine soybean crop and crushing pace are also expected to see more supply competition from other soy meal exporters, such as the US, Brazil and India, at better prices, SEA noted.

Indian oil meal export drivers

The association added that the deprecation of the Indian Rupee (which is what is making Indian exports cheaper), the proximity to destination markets, the ability to sell in smaller amounts to major consumers in Southeast Asia and a preference for non-genetically modified (GMO) soy meal from certain buyers in the US and Europe helped to uplift soy meal demand in November.

India’s rape meal exports in November also rose by more than 200% on the year and 36.9% higher than October to 134,952 tonnes, with total rape meal exports in the first eight months of FY22/23 coming to 1.48 million tonnes – a record high.

The level exceeded the previous high of 1.25 million tonnes seen in the 2011-12 marketing year.

“Currently, India is the most competitive supplier of rapeseed meal to South Korea, Vietnam, Thailand and other Far East countries at $255 per tonnes FOB India, against Hamburg ex-mill at $368 per tonne,” SEA said.

For the first eight months of the 2022-23 season, India has exported 2.39 million tonnes of oil meal, 50% more than the previous year.

South Korea, Vietnam and Thailand remain major buyers of Indian oil meal, with South Korea importing 603,686 tonnes of meal between April-November 2022, 47.8% more than a year ago – consisting of 420,776 tonnes of rape meal, 161,073 tonnes of castor seed meal and 21,837 tonnes of soy meal.

Vietnam imported 567,362 tonnes of oil meal for the same period – 49.7% more than last year – while Thailand’s oil meal imports from India were at 433,961 tonnes – a 208% jump from the previous year.