India signed contracts for the export of about 400,000 tonnes of soyameal in October, when the new harvesting season began, a trade body said on Friday, but it added overseas sales were expected to fall year on year.
"Export (deals) in October this year are slightly more than last year," Rajesh Agrawal, chairman of the Soyabean Processors Association of India, told Reuters.
In deals this week, an exporter agreed to sell 20,000 tonnes of soyameal to Japan at around $248 per tonne cost and freight, while 55,000 tonnes will be heading for South Korea at a cost of $249 per tonne cost and freight, he said.
Meal shipments are scheduled to reach Japan and South Korea between December and February, Agrawal said. Other deals had been signed with Indonesia. India, which is likely to produce about 7 million tonnes of soyabeans this year, is expected to export about 3.5 million tonnes of meal against 4.1 million tonnes last season.
Output during the 2005-06 season was at 7.05 million tonnes. "Domestic soyameal demand is likely to rise this season in comparison with last season when consumption was hit by the bird flu scare," he said.
"The likely rise in domestic demand will drag down exports." Consumption of feedstock in India fell following an avian flu outbreak in the western state of Maharashtra and some other regions this year, leaving surplus meal for exports.
Agrawal said the scare led to a fall in domestic demand of 400,000-500,000 tonnes. India consumes about 2 million tonnes of soyameal annually, he said. India exports soyameal mainly to South Korea, Japan, Indonesia, Thailand and Sri Lanka.
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