Pakistan's soybean meal trade faces supply shortage

Lead: Singapore, Jan 9 (Reuters) - Pakistan's soybean meal trade is facing a shortage of supplies, trade officials said on Wednesday, as the recent tense border situation between India and Pakistan has affected shipping from India, and Pakistani users are reluctant to buy expensive U.S soybeans Pakistan's soybean meal importers have reduced their purchases from India in the past two months in anticipation of an increase in US soybean arrivals Haroun Rashid, President of the all Pakistan vegetable oil association The price of soybeans offered for sale by Pakistan's state agencies, which sell donated soybeans under the US export donation program, is unacceptable to traders What's more, the recent dispute between India and Pakistan was first caused by an attack on the Indian Parliament The tense relations between the two countries led to difficulties in the transportation of soybean meal purchased in the earlier contracts Rashid, who is also an executive director of Kashmir edible oil, said in a telephone interview with Reuters in Lahore that soybean meal supply is currently tight The feed market is facing a shortage of raw materials After the attack on India's parliament, New Delhi adopted a series of diplomatic measures, including the suspension of railway services, to force Islamabad to fight against the militants operating in Pakistan Rashid added that it was too early to say exactly how the political situation had evolved But ultimately politics will determine the situation Last year, Pakistan imported 140000 tons of soybean meal every year to meet the demand of domestic poultry industry, all of which came from India However, Pakistan has recently significantly reduced the purchase of soybean meal from India, as a total of 165000 tons of us soybeans will arrive in Pakistan by the end of January [US soybeans will arrive this week] according to Rashid, 124000 tons of us soybeans have arrived in Pakistan since October He believes that 41000 tons of American soybeans will arrive in Karachi on January 11, which will be the last batch of American donated soybeans He said private traders were not keen to buy us soybeans from the state-owned trading company of Pakistan (TCP), which has raised prices in the past two auctions In the first auction, the retention price was 11000 rupees (US $183) per ton, attracting many buyers at that time Later, TCP raised the price, which has risen to RS 12800 in the past two auctions So there are not many buyers He said the industry felt that the price of American soybeans should be between 11000 rupees and 12000 rupees per ton He said that the next auction is scheduled to be held on January 14, and the government of Pakistan is expected to reduce the reserve price Rashid added, "if traders can buy soybeans at a lower price, there will be no trouble Because the use of these American soybeans can produce 130000 tons of soybean meal, which can basically replace the Indian soybean meal " He said that traders' delay in purchasing soybeans has affected the processing industry and pushed up local soybean meal prices, which are currently quoted at 12000 rupees per ton, compared with 10600 rupees per ton in early December In any case, he said, the amount of imported Indian soybean meal will be reduced by about 50%, because Pakistan will have to consume the soybean meal made in the United States According to the requirements of the U.S export donation program, Pakistan cannot export the soybean meal produced by the donated U.S soybeans Note: 1 US dollar is 60.12 Pakistani rupees.