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| A journey of a thousand miles begins with a single step. |
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China Again Turns to India for Soyameal Supply |
KOLKATA : China, which has drastically cut down soyameal imports from India in the early part of the current year, has again turned to India for the animal feed. During the period, it was largely dependent on US for getting soyameal. But with the freight of soyameal cargo from the US on the rise, it has booked 70,000-80,000 tonnes of soyameal from India for shipment between October and November this year.
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During the first five months of the current year (April-August), China totally bypassed India, while sourcing soyameal and purchased around 65,175 tonne of rapeseed meal from India. This was a small buy from India because during the corresponding period last year, its import of rapeseed meal recorded 2,62,465 tonne.
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Industry sources said China booked the soyameal for October-November delivery at $310-$330 a tonne, which was $100 less than the freight cost for bringing it from the US and other south American countries. If this price differential continues, China is expected to purchase another 1,00,000 tonne of soyameal from India in the last quarter of the current fiscal. Piggeries in China are mainly driving up demand for animal feed in China.
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Apart from the higher freight rate, Chinese soyameal importers are worried about quarantine authorities, who have stepped up inspection of soyameal cargoes from the US and Argentina in a possible trade backlash following a massive recall of Mattel toys made in China, they said.
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Vietnam nonetheless continues to remain India’s largest market for all types of oilmeal. Its import of oilmeal from India increased 11% to 382,600 tonne in April-August 2007.
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According to the Solvent Extractors’ Association of India (SEA), it purchased from India 277,950 tonne of soyameal, 24,975 tonne of rapeseed meal and entire quantity of 79,200 tonne of ricebran extraction in that period. |
However, with soyabean crushing coming to an end in July-August, export of soyameal dropped 32% to 538,825 tonne in the first five months of the current year. This has contributed a great deal in pushing down total oilmeal export from India by 18% to 1,079,625 tonne. |
| Price that matters |
China has booked 70,000-80,000 tonnes of soyameal from India for shipment between October and November this year. The deal has been finalised at $310-$330 a tonne, which is $100 less than the freight cost for bringing it from the US. |
| If price differential continues, China is expected to purchase another 100,000 tonne of soyameal from India in the last quarter of the current fiscal. |
Source : Economic Times |
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