Global pricing pressure and South American competition drag down Indian oilmeal exports 36% in August

Indian oilmeal exports declined by 36 percent in August, driven by pricing pressures in international markets. Data compiled by the Solvent Extractors’ Association of India (SEA) showed that India exported 1.76 lakh tonnes of oilmeals in August 2026, compared to 2.76 lakh tonnes in August 2025.

The overall export of oilmeals fell to 12.82 lakh tonnes during the first five months of the financial year 2026-27, down from 17.93 lakh tonnes during the same period of the previous financial year, marking a 28.5 percent decrease.

BV Mehta, Executive Director of SEA, noted that Indian soybean meal faced severe pricing pressure in international markets during August 2026, trading around $622 a tonne against global benchmarks near $445 a tonne.

He stated that cheaper supplies from South American producers, including Argentina and Brazil, continue to capture major market share. Additionally, strong domestic demand from livestock and poultry feed manufacturers, persistent Red Sea shipping disruptions, and elevated maritime freight costs have heavily constrained outward shipments.

Soybean meal shipments from India decreased sharply to 2.05 lakh tonnes in April-August 2026-27 from 7.57 lakh tonnes in the corresponding period of 2025-26, registering a 73 percent decline. Meanwhile, the Soybean Processors Association of India (SOPA) has estimated the current kharif soybean crops at 108 lakh tonnes, though some trade opinions suggest the crop size may be lower than this estimate, reflected in rising domestic prices of beans and meals over recent days.

While soybean meal shipments suffered major slumps, rapeseed meal exports to key Asian destinations such as China, Bangladesh, and Vietnam provided a partial cushion. India exported 8.80 lakh tonnes of rapeseed meal in the first five months of 2026-27, compared to 9.15 lakh tonnes in the corresponding period of the previous fiscal.

China, Bangladesh, South Korea, and Vietnam emerged as the primary importers of Indian oilmeals during April-August 2026-27. China imported 4.01 lakh tonnes of oilmeals, up from 3.75 lakh tonnes in April-August 2025-26, which included 3.94 lakh tonnes of rapeseed meal, 4,528 tonnes of soybean meal, and 1,616 tonnes of castor meal.

India exported 2.17 lakh tonnes of oilmeals to Bangladesh during the first five months of the fiscal year, compared to 1.78 lakh tonnes previously. This volume included 2.08 lakh tonnes of rapeseed meal, 8,204 tonnes of soybean meal, and 911 tonnes of ricebran extraction.

South Korea imported 1.53 lakh tonnes of oilmeals during April-August 2026-27, down from 2.09 lakh tonnes in the previous year. The imports comprised 86,636 tonnes of rapeseed meal, 48,796 tonnes of castor meal, and 18,458 tonnes of soybean meal.

Vietnam increased its imports to 1.23 lakh tonnes during the first five months of 2026-27 from 92,189 tonnes in the previous fiscal period. These imports included 65,510 tonnes of ricebran extraction, 53,580 tonnes of rapeseed meal, 4,600 tonnes of soybean meal, and 261 tonnes of groundnut meal.

"The decline in Indian oilmeal exports highlights the vulnerability of domestic exporters to global price disparities and intense competition from South American producers like Argentina and Brazil. When domestic prices and freight costs remain high alongside international benchmarks falling short, export competitiveness naturally suffers. However, steady demand from key Asian markets like China, Bangladesh, and Vietnam for rapeseed meal indicates that maintaining diversified export destinations remains crucial for mitigating localized sector downturns." — Dr. Shishir Gupta, Founder & CEO, StartupLanes