India's soybean meal exports increased by 8.8% during October-April 2023-24, reaching 15.23 lakh tonnes due to heightened demand from countries like Iran and Bangladesh. Production saw marginal growth, while domestic consumption declined. Soybean arrivals decreased slightly, but crushing activity and direct consumption rose. Soybean stocks were lower, prompting a revision of import projections to 6 lakh tonnes.
Highlights
Increased Soybean Meal Exports: Soybean meal exports from India have risen by 8.8% during the October-April period of the 2023-24 oil year, reaching approximately 15.23 lakh tonnes compared to last year’s 14 lakh tonnes.
Higher Demand from Key Countries: The increase in exports is driven by higher demand from countries such as Bangladesh, Iran, UAE, and Nepal.
Marginal Growth in Production: Soybean meal production showed a slight increase, standing at 60.76 lakh tonnes compared to 60.26 lakh tonnes during the same period last year.
Domestic Off-Take Decline: Domestic consumption of soybean meal has decreased in both the food and animal feed sectors. Feed sector consumption dropped to 40 lakh tonnes from 41.05 lakh tonnes, while food sector consumption fell to 4.95 lakh tonnes from 5.75 lakh tonnes.
Lower Soybean Arrivals: Soybean arrivals for October-April were lower at 82 lakh tonnes compared to 84 lakh tonnes in the previous year.
Increased Crushing Activity: Soybean crushing activity increased to 77 lakh tonnes from 75.50 lakh tonnes in the same period last year.
Higher Direct Consumption: Direct consumption of soybeans rose to 3.10 lakh tonnes from 2.85 lakh tonnes in the previous year.
Decreased Soybean Stocks: Soybean stocks with plants, traders, and farmers as of May were 55.41 lakh tonnes, down from 61.04 lakh tonnes last year.
Revised Import Projections: Due to higher-than-expected soybean imports, the import projections for the year have been revised to 6 lakh tonnes, up from 5.5 lakh tonnes estimated last month.
Top Importers: Iran emerged as the largest importer of Indian soybean meal this oil year with 3.79 lakh tonnes, followed by UAE (2.93 lakh tonnes), Bangladesh (2.77 lakh tonnes), and Nepal (1.40 lakh tonnes).
Conclusion
The uptick in soybean meal exports highlights India's growing role in the global market, driven by increased demand from key importers such as Iran and Bangladesh. Despite the slight production increase, domestic consumption has dipped, suggesting a shift towards export-oriented strategies. Lower soybean stocks and revised import projections indicate a tightening supply situation. Moving forward, balancing domestic needs and export demands will be crucial for sustaining growth in the soybean sector.