The soybean export is causing a crisis in the domestic market hurting the cattle feed industry
The government has banned the exports of soybean meal in order to prevent the price hike of the key ingredients needed to produce poultry and cattle feed.
In this regard, the commerce ministry issued a notification on October 12 saying the shipment of soybean meal would be stopped from October 14.
However, the exporters could ship the feed ingredient until October 20 against the settlement of LC or TT until October 13, said the notification.
The decision was taken in the face of rising demands from the feed millers, poultry industry operators and dairy farmers as prices of the soybean meal rose 41% year-on-year to Tk53 to Tk55 per kilogram in August after India allowed imports to meet its domestic shortage of soybean meal.
They said that the soybean export is causing a crisis in the domestic market hurting the cattle feed industry as it is the major ingredient for poultry, fish and livestock feed.
Currently, there are nearly 350 feed mills in the country and the domestic feed millers can procure 70% to 80% of soybean meal locally and import the remaining 20% to 30%.
The feed millers, poultry and fish farmers expressed relief over the decision to stop exports.
However, they also said that the decision to stop exports is not enough, it is also important to bring the price of soybean meals back to where it was earlier.
If it cannot be done, the price of feed will not decrease and it will not be possible to control the production cost of eggs and chickens.