Indian oilmeal exports have been falling drastically mostly due to ban on it by international buyers. This follows the controversy early this year in connection with the poor quality of oilseed meals supplied by Indian suppliers.

The latest controversy of disputed cargo of soyameal supplied by eight Indian exporters to LG International of South Korea is still pending in the courts of UK-based Grain and Feed Traders' Association (GAFTA).

Total exports of oilseed touched a low of 750,682 mt from 1,066,306 mt recorded in the same period last year. Extractions of groundnut slumped by a massive 45.09 per cent, rice bran 87.81 per cent, rapeseed 31.73 per cent, sunflower seed 56.50 and soyabean 10 per cent.

On the other hand, imports of palmoil and soyabean oil have surged substantially during the 10-monthperiod ended August 1998, thanks to the deficit of edible oil in the country since November last, and the ban on the use of mustard oil following the dropsy controversy in August this year.

Total imports of edible oil during the period from November 1997 to September 1998 have touched 14,70,041 tonnes, including import of around 98,000 tonnes of palmoil till September this year by the State Trading Corporation (STC). The figures is higher than 13,53,690 mt edible oil imported in the same period last year when STC was not present in the international edible oil markets. During the year ended October 1997, the country had imported a total of 17,48,126 mt of edible oils.

The country was facing edible oil supply shortage during the oil year from November 1997 to October 1998 as only 63 lakh tonnes were available against a demand of 78 lakh tonnes. The gap seems to have now been bridged through imports by government and private traders.

On the oilseed meal front, their sharply declining exports have hithard the members of seed crushing industry. In a depressed market, the resultant pain of loss of export earnings was severe enough forcing Solvent Extractors' Association (SEA) president Ajay Tandon to inaugurate last month the Globoil India '98 almost on a pleading note. "Barring a few instances of poor quality supplied earlier, there is nothing wrong in the products supplied by Indian exporters," Tandon said during his inaugural speech.

"We assure you of good quality and request to resume purchasing from India your oilseed meal requirements," he said. Given the past experience, it is unlikely that the international oilmeal buyers are impressed by the SEA president's plea. Oilmeal export figures for September are being compiled, but it is not sure whether they are encouraging by any standards.

Meanwhile, the total availability of edible oils, including 98,000 tonnes of palmoil imported till September 1998 by STC, is large enough to prompt the government not to rush through its edible oil purchase. Thegovernment had asked STC to import around 1.5 lakh tonnes of edible oil from global markets to be supplied through public distribution system (PDS) during the oncoming festive season.

Interestingly, despite perceived shortage, large quantities of palm oil imported by STC on behalf of various state governments to tide over the edible oil shortage during festival season is said to be lying unclaimed at various ports. According to one estimate, hardly 30,000 tonnes have been lifted by the state governments.

The unclaimed edible oil stock at ports is likely to cause more problems for both the STC and various port authorities, for, if not lifted within reasonable time, the oil could lose its edible quality whereafter it would have to be thrown out for industrial purpose only.

Prices of various edible oils had jumped in the international markets, especially after the Indian government announced in August to import large amount of edible oil from the international markets. STC had entered the internationalmarket last month to purchase palmoil to be distributed through the public distribution system.

The union cabinet had earlier asked STC to speed up procurement of the remaining 52,000 tonnes to tide over any edible oil crisis following a ban on use of mustard oil. In view of a spurt in global palmolein prices following the cabinet decision, government gave STC the flexibility to purchase other soft oils. Though prices of other soft oils rule lower than palmolein, their freight charges make imports a costly proposition.