Soymeal exporters to lose Rs50 cr due to rupee rise

Soymeal exporters to lose Rs50 cr due to rupee rise
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First Published: Thu, Jun 21 2007. 02 55 PM IST
Updated: Thu, Jun 21 2007. 02 55 PM IST
PTI
New Delhi: Soymeal exporters are likely to take a hit of Rs40-50 crore in profit margins during 2006-07 season ending September due to the rise in rupee value against the dollar, an industry official said.
“Last year, we exported soymeal worth Rs3,720 crore ($9 million). But this year there will be an erosion of about Rs40-50 crore in profit due to rupee appreciation,” Soyabean Processors’ Association of India spokesperson Rajesh Agrawal told PTI.
In value terms, exports are expected to decline to about Rs3,500 crore this season, he said, attributing it to a likely fall in the volume and rupee appreciation.
The Indian currency has strengthened more than 14% against the US greenback since August 2006.
Agarwal said the country has exported soyameal worth Rs2,950 crore during October-May period.
“This figure must have been at higher level had the rupee remained at the normal level and not appreciated against dollar,” he said.
India’s soyameal export may decline by 14-17% to 3.5-3.6 million tonnes in 2006-07 season against 4.2 million tonnes in the previous year, due to higher domestic demand from poultry industry and less availability of soyabean seeds for crushing.
“We have exported about 3.1 million tonnes till May and in the remaining four months we expect to export 400,000-500,000 tonnes,” he said.
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First Published: Thu, Jun 21 2007. 02 55 PM IST
More Topics: Soymeal | exports | rupee | Money Matters | Commodities |