China remained the largest importer of Indian oilmeals, driven by tariffs on Canadian canola products, while exports to Bangladesh fell sharply amid political disturbances | Photo Credit: cueapi

India’s total oilmeal exports declined to 37.68 lakh tonnes (lt) during 2025-26 from 43.42 lt in 2024-25, registering a drop of 13.22 per cent. In value terms, exports fell to ₹9,340 crore in 2025-26 from ₹12,171 crore in 2024-25.

BV Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA), said India’s oilmeal exports continue to face significant market and logistical challenges, adversely affecting export realisations and profitability. Key issues include severe disruptions in the Red Sea shipping routes. These disruptions have sharply increased freight costs. In addition, intense price competition from South American and European suppliers also impacted oilmeal exports from India.

Stating that the geopolitical conflicts have forced shipping companies to bypass the Red Sea route, he said detouring around the Cape of Good Hope has added 10-15 days to shipping journeys. This has created container shortages and inflated freight costs. Approximately 20 per cent of India’s oilmeal exports (destined for West Asia) and 15 per cent (destined for Europe) are highly vulnerable to these logistical delays and costs.

Soymeal uncompetitive

He said Indian soybean meal exports remain uncompetitive globally due to price disparities with major producers such as Argentina and Brazil. Furthermore, domestic livestock feed makers have increasingly shifted towards cheaper alternatives, such as DDGS (a by-product of ethanol), at the expense of soymeal and other oilmeals.

Mehta said the domestic high price of soybeans and the drop in crushing activity led to lower shipping volumes.

He said India’s oilmeal exports to China reached 8.78 lakh tonnes during the 2025-26. This was largely driven by India’s price competitiveness for rapeseed meal and China’s restriction on Canadian canola. A major driver of Indian exports was China’s 100 per cent tariff on Canadian rapeseed/canola meal.

South Korea became the second largest importer of Indian oilmeals during 2025-26. India exported 3.50 lt of oilmeals to South Korea. This included 1.54 lt of castorseed meal, 1.38 lt of rapeseed meal and 0.59 lt of soybean meal.

Though Bangladesh is one of the key importers of Indian soybean and rapeseed meal, the export volume from India reduced nearly 50 per cent in 2025-26 due to political disturbances in that country.

Other importers of Indian oilmeals included Kenya (1.87 lt), Germany (1.78 lt), Nepal (1.67 lt) and France (1.37 lt).

Export price surges

The export price of soybean meal jumped to $477 a tonne from $356 a tonne in March 2025, and the price of rapeseed meal increased to $228 a tonne ($196 a tonne). Rupee depreciation of about 8 per cent over the year helped exporters face competition in the international market, he said.

Published on May 27, 2026