18-06-2024 09:59 AM | Source: Kedia Advisory
India's Soyameal Exports Soar by 8% Amidst Strong West Asian Demand by Amit Gupta, Kedia Advisory

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India’s soyameal exports grew by 8% from October to May 2023-24, driven by strong demand from West Asia, reaching 16.41 lakh tonnes. Despite lower domestic consumption, crushing activities increased, and production rose to 68.26 lakh tonnes. Soyabean stocks decreased to 45.71 lakh tonnes, while imports and balance stocks saw a rise. Major buyers included Iran, UAE, Bangladesh, and Nepal.



Increased Soyameal Exports: India’s soyameal exports surged by approximately 8% during the October-May period of the 2023-24 oil year. This increase was fueled by a growing demand from West Asia, with the total exports reaching 16.41 lakh tonnes compared to 15.16 lakh tonnes in the same period of the previous year. This highlights a robust international market for Indian soyameal despite domestic challenges.

Decline in Domestic Offtake: While exports of soyameal increased, domestic offtake saw a decline. The feed sector's consumption dropped marginally to 45.50 lakh tonnes from 46.25 lakh tonnes, and the food sector's usage decreased to 5.45 lakh tonnes from 6.25 lakh tonnes in the same period last year. This indicates a shift in market dynamics with more focus on fulfilling international demand over domestic consumption.

Market Arrivals and Crushings: Market arrivals of soyabean were slightly lower, at 89.50 lakh tonnes compared to 91 lakh tonnes the previous year. Despite this, crushing activities improved, with 86.50 lakh tonnes processed by May, up from 83.50 lakh tonnes the previous year. This suggests that the processing industry has become more efficient in handling available soyabean stocks to meet increased production demands.

Soyabean Stock Levels: As of June 1, soyabean stocks held by crushing units, traders, and farmers were estimated at 45.71 lakh tonnes. This is a decrease from 53.87 lakh tonnes in the same period last year. The reduction in stock levels indicates higher utilization and processing rates, which could be attributed to increased export demands and improved crushing performance.

Production of Soyameal: The production of soyameal during October-May was up at 68.26 lakh tonnes from 66.65 lakh tonnes the previous year. This rise in production aligns with the increased crushing activity and export demand, demonstrating the industry's capability to scale up production in response to market needs.

Increased Balance Stocks: The balance soyameal stock as of June 1 stood at 2.31 lakh tonnes, an increase from 1.52 lakh tonnes the previous year. Despite higher exports, the increase in balance stocks suggests that production has sufficiently met export demands while still retaining a buffer for future requirements.

Soyameal Imports: Imports of soyameal during the October-May 2024 period were recorded at 0.24 lakh tonnes, up from 0.06 lakh tonnes in the same period the previous year. Although imports are relatively small, the increase highlights a supplementary approach to meeting domestic demands amidst growing international exports.



The growth in soyameal exports highlights India's ability to capitalize on international demand, particularly from West Asia, despite a decline in domestic offtake. Improved crushing efficiencies and increased production have enabled the country to meet this demand. However, the decrease in domestic consumption suggests a need to balance export growth with local market stability. The industry's responsiveness to market dynamics is evident, with significant buyers like Iran and UAE driving export success. Moving forward, maintaining this balance will be crucial for sustained growth.


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