Soybean meal export allowed, angering farmers

The government has allowed the export of soybean meals on a case-by-case basis, a move that has generated anger among dairy farmers.

The relaxation comes nearly four months after the commerce ministry banned the shipment of the key ingredient of poultry and livestock feed following demands from farmers.

The commerce ministry on October 12 banned the export of soymeal to contain a spike in prices of feeds in the domestic market.

The ministry withdrew the bar earlier this month but on one condition -- permission will be given on a case-by-case basis based on the demand and supply situation, according to a notification of the Office of the Chief Controller of Imports and Exports.

The relaxation created worries among farmers about whether this would raise production costs.

"Soybean meal exports have been allowed on grounds that prices are lower here than in the neighbouring country. It is a suicidal decision," said Md Shah Emran, general secretary of the Bangladesh Dairy Farmers' Association (BDFA).

The duty-free import of soybean, which leaves soybean meal once oil is extracted, is allowed in Bangladesh for edible oil producers, for which the price of soybean meal is cheaper than in India.

After the notice was issued, the price of animal feed has been growing and at least 50 per cent of farms will have to be shut down, Emran apprehended.

According to the BDFA, there are around 12 lakh small and medium farms in Bangladesh.

He said around 75 per cent to 80 per cent of the demand for soybean meal can be met by local mills.

The rest has to be imported but in spite of this, the government is allowing the export of soybean meals on a case-to-case basis, he said.

According to the BDFA general secretary, the price of soybean meal increased by 71 per cent to Tk 60 per kilogramme at present from Tk 35 per kg a year ago.

Bangladesh requires 20 lakh tonnes of soybean meal, and 80 per cent of the ingredient comes from local seed crushing mills, which import soybean seeds to cater to both edible oil and feed industries.

Soybean meal accounts for 25-35 per cent of animal feed.