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Informist, Monday, Nov. 18, 2024

 

MUMBAI – The Solvent Extractors' Association of India has sent a memorandum to the central government requesting it to boost the export of rapeseed meal and maintain a minimum support price for farmers. "During the period of Apr-Oct this year, rapeseed meal exports have declined by approximately 25%, with only 1.18 million tonnes exported compared to 1.51 million tonnes during the same period last year," the association said in the memorandum. 

 

India is a key exporter of rapeseed meal as an essential ingredient of cattle feed in the international market. In the previous fiscal year 2023-24 (Apr-Mar), India exported nearly 2.2 million tonnes of rapeseed meal, providing crucial support to farmers by enabling better prices for their produce. However, this year witnessed a reduction in rapeseed meal exports.

 

"This is largely due to our higher pricing in the international market," the association said. "Currently, we are priced out of the international market, with rapeseed meal ex-Hamburg quoted at $283 per tonne, $40-50 less than the Indian prices."

The association in its memorandum urged the government to grant an incentive of at least 15% for rapeseed meal by way of higher duty remission, freight subsidy, and interest rate subvention to make the exports competitive. According to media reports, the government introduced the Remission of Duties and Taxes on Exported Products, or RoDTEP, on Jan. 1, 2021, to align with international trade standards while continuing to provide essential support to exporters. The association requested this to ensure that domestic prices remain above the minimum support price for rapeseed.

 

The current global glut in soymeal is contributing to the problem with production up nearly 28 million tonnes to 422 million tonnes. "Increased demand for soyoil for food and energy has driven crushing activities, resulting in an oversupply of soymeal, which in turn has placed downward pressure on the prices of all oilmeals, including rapeseed meal," the association said in the memorandum.

 

Farmers have been encouraged to expand the planting area for rapeseed-mustard and if weather conditions remain conducive, the association anticipates a bumper crop of over 13 million tonnes. "While this is a promising development, it also presents a challenge: despite a potentially record-breaking harvest, the disposal of rapeseed meal remains a significant issue," the memorandum mentioned. Additionally, very low prices of maize distillers' dried grains with solubles, or DDGS, due to continuous increasing production of ethanol are replacing domestic demand for rapeseed meal. 

 

The total oilmeal exports during the first seven months of FY25 were down 7% at 2.4 million tonnes, the association's data showed. This was mainly due to a drop in the export of rapeseed meal and castor seed meal, the association said. "To ensure market stability, we need to export at least 2.5 million tonnes of rapeseed meal this year. However, with current exports already down by 22% in the first seven months of the fiscal year 2024-25, urgent support is required," it said.

 

Current rapeseed prices are hovering around INR 6,200-6,300 per 100 kg. However, as per industry estimates, there are good chances that the prices will fall below the minimum support price of INR 5,950 per 100 kg, the memorandum said. Considering the poor price scenario of rapeseed meal domestically, the association has requested the government to take suitable action such as reduction of abundant maize DDGS and de-oiled rice bran by allowing exports.  End

 

US$1 = INR 84.38

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Anjali Lavania

Edited by Rajeev Pai

 

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