Approval of export of DORB is necessary to increase the shipment of oil meal

25-Dec-2024 11:13 AM

The approval of De-Oiled Rice Bran (DORB) export is crucial for boosting India's oil meal shipments, especially as the global demand for products like soymeal faces increased competition from cheaper sources like Argentina, Brazil, and the United States.

According to data from the Solvent Extractors Association of India (SIA), soymeal exports from India increased significantly in the first eight months of the 2024 financial year, reaching 12.06 lakh tonnes, compared to 9.37 lakh tonnes during the same period in 2023.

This surge was mainly driven by strong demand from the United Arab Emirates (UAE), Iran, and France. However, the competitiveness of Indian soymeal has weakened due to price disparities with countries like Argentina and Brazil.

Simultaneously, Bangladesh, a key importer of Indian rapeseed meal, has reduced its demand due to internal unrest.

This has created an opportunity for De-Oiled Rice Bran, a byproduct of rice milling, to fill the gap in export potential.

However, the export of DORB has been banned since July 2023, which has resulted in a sharp decline in its domestic prices and caused financial losses for manufacturers.

The industry has been urging the government to lift the ban, as countries like Vietnam, Taiwan, and Thailand have expressed interest in importing DORB.

Before the ban, India exported approximately 5 lakh tonnes of DORB annually, contributing significantly to the country's foreign exchange earnings.

Allowing the export of DORB could enhance the overall performance of India's oil meal exports, helping to offset the downturn in soymeal and rapeseed meal shipments and generate much-needed revenue.