A decline in arrivals of soyabean by around 25 per cent in spot markets since the beginning of the new season and lower meal production as farmers held back supplies in anticipation of higher prices has dampened exports of soyabean meal.
The disparity in prices in the international market from rival countries has hit orders from traditional buyers dampening exports of soyabean meal.
Lower availability in the domestic market and high disparity in prices in the international market has affected export deals, exporters claiming an extremely sluggish response from buyers for Indian origin soyabean meal.
An exporter of soyabean meal from Indore wishing anonymity said, When prices are not competitive and so high, why would anyone place an order for an Indian meal. Other countries are offering at lower prices but we cannot afford to sell at those rates because local rates are very high.
In Madhya Pradesh, soyabean production was estimated at 52 lakh ton as against 41.7 lakh ton last year, as per SOPAs estimate. In India, soyabean output is pegged at 119 lakh ton, up 14 per cent from the previous year.
In spot markets soyabean arrivals since the beginning of the new oil year until January were recorded lower by 25 per cent to 48 lakh ton while production of meal declined by 40 per cent to around 22 lakh ton.