New Delhi: Some soya meal buyers in South Korea, Vietnam and Indonesia have reneged on deals with India after prices fell, forcing exporters to renegotiate contracts and offer cheaper rates, a leading seller said.
“Some major exporters have seen defaults by importers of Indian soya meal in Korea, Vietnam and Indonesia as prices have fallen sharply,” KN Resources Pvt. Ltd managing director Vijay Shrishrimal said.
He said his firm signed its first export deal for the new season at $464 (Rs22,782) per tonne at the end of September and prices have since dived to $290 per tonne. Reuters reported in early September that the country’s first export deal for the new season was sealed at $450. “Obviously, a sharp fall in export prices is the reason behind defaults. Buyers also say liquidity crunch and local currency devaluation have hurt them,” Shrishrimal said.