India's oilmeal exports declined by 28.51 per cent during April–August of the 2026–27 financial year, reflecting increasing international price competition, strong domestic demand and disruptions in global shipping routes.
According to data released by the Solvent Extractors' Association of India (SEA) on November 9, total oilmeal exports fell to 12.82 lakh tonnes during the five-month period, compared with 17.93 lakh tonnes in the corresponding period of the previous financial year.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: India's oilmeal exports recorded a 28.51 per cent decline during April–August FY27.
Location: India.
Authority/Organisation: Solvent Extractors' Association of India (SEA).
Action Taken: Industry association released export figures highlighting falling shipments and international pricing pressures.
- Impact: Indian oilmeal exporters face stronger competition, particularly in soybean meal, while domestic feed demand and shipping costs add pressure.
The sharpest decline was recorded in soybean meal shipments, which plunged 73 per cent to approximately 2.05 lakh tonnes from 7.57 lakh tonnes a year earlier.
The industry association attributed the decline primarily to the price disadvantage faced by Indian soybean meal in international markets. During August 2026, Indian soybean meal was offered at approximately $622 per tonne, compared with global benchmark prices of around $445 per tonne.
This price difference has made Indian supplies less competitive against products from major South American exporters, particularly Brazil and Argentina. Importers seeking lower-cost animal feed ingredients have increasingly turned towards these suppliers.
Editorial Analysis
Why This Matters
Oilmeal products are important ingredients in animal feed, particularly for poultry and livestock industries. Their production is also closely connected with India's soybean, rapeseed and other oilseed processing sectors. A decline in exports can affect processing companies, exporters, agricultural supply chains and businesses dependent on overseas markets. The sharp fall in soybean meal shipments is particularly significant because it reflects a competitive disadvantage in international pricing. For Indian exporters, lower-cost supplies from Brazil and Argentina create pressure to improve processing efficiency, logistics and product competitiveness. The trend also highlights the relationship between domestic agricultural demand and export availability. Stronger domestic consumption can support local industries while reducing the surplus available for international customers.
Domestic demand has also contributed to the pressure on exports. Livestock and poultry feed manufacturers in India have maintained strong demand for oilmeals, reducing the availability of certain products for overseas markets.
Shipping conditions have added another challenge. Disruptions along Red Sea routes and elevated maritime freight costs have increased the difficulty of supplying international customers competitively.
Despite the overall decline, rapeseed meal exports remained comparatively resilient. Shipments reached 8.80 lakh tonnes during April–August, against 9.15 lakh tonnes in the corresponding period a year earlier.
China, Bangladesh and Vietnam continued to provide important markets for Indian rapeseed meal and other oilmeal products.
China remained the largest buyer among the reported destinations, importing approximately 4.01 lakh tonnes of Indian oilmeals during the five-month period, compared with around 3.75 lakh tonnes a year earlier.
Bangladesh also increased its purchases to approximately 2.17 lakh tonnes from 1.78 lakh tonnes. Vietnam's imports rose to around 1.24 lakh tonnes from 92,189 tonnes.
South Korea, however, reduced its purchases to approximately 1.54 lakh tonnes from 2.10 lakh tonnes in the corresponding period.
Other oilmeal categories also experienced declines. Castor seed meal exports fell to 96,245 tonnes from approximately 1.06 lakh tonnes, while groundnut meal shipments dropped to 3,231 tonnes from 14,960 tonnes.
The latest figures highlight the competitive challenges facing India's oilseed-processing industry. Although India has an established domestic processing sector and access to major Asian markets, export performance remains sensitive to international prices, availability of raw materials, domestic consumption and shipping costs.
The decline also raises questions about the ability of Indian exporters to compete with large agricultural producers when global buyers have access to significantly cheaper alternatives.
For the remainder of FY27, the industry's export performance will depend on soybean availability, domestic price movements, international demand and improvements in shipping conditions.
