India has sold 40,000 tonnes of rapeseed meal to Indonesia in a recent deal and traders said on Thursday the country could double its total annual exports of the meal because of competitive prices and a bumper crop. The deal with Indonesia was struck at around $98 a tonne free on board for March and April shipments, a leading trade official, who did not want to be identified, told Reuters.

"There is a new window of opportunity in rapeseed meal," one Bombay-based exporter said. "Nothing else is selling, so everyone is jumping to export rapeseed meal."

India mainly sells soyameal, but deals have been slow since the beginning of the season in October because of a global glut of soyabeans.

Grains exports too have been virtually on hold after the country stopped selling wheat and rice to traders at subsidised rates for exports two years ago, due to low stocks.

Dealers said India was likely to double its rapeseed meal exports as lower international prices have led to increased demand for it and the country is forecast to harvest a big crop.

India sold 499,075 tonnes of rapeseed meal to destinations in Southeast Asia in the 10 months through January.

Shipments in the financial year ending March are likely to reach 1 million tonnes, traders said.

Ample soil moisture and winter rains have boosted prospects of rapeseed, India's main summer oilseed crop, which is mainly grown in the desert state of Rajasthan. This week, rapeseed was quoted around 14,500 rupees a tonne for March delivery against the government's support level of 17,000 rupees.

Copyright Reuters, 2005