China :
India’s soyameal buyer
India has
started soyameal export to big buyer China, thereby leading to an increase in domestic
prices.
In this
week China, has contracted 350,000 tonnes meal, out of which 30,000 tonnes is from India.
It is expected to contract another 200,000 tonnes by the end of this week as reported.
Traders reported that China could import as much as two million tonnes of soyameal or more
for the second half of this year. It imported nearly four million tonnes in the peak
import year before introducing the value-added tax (VAT).
China’s
entry has led to an increase in international prices and the ripple effect is being felt
in India as livestock and poultry farmers are now having to shell out more in a bid to
retain meal supplies within the country.
Till now
India has exported around 80,000 tonnes meal to traditional destinations such as the
Middle East. According to industry sources, India may find it difficult to cater to Chines
demand over the next couple of months, as there are not likely to be sufficient volumes
available within the country.
According
to industry estimates, India is expected to produce 50,000 tonnes meal every month. |
