India’s oilmeal exports declined by 29 per cent during the first five months of the financial year 2026-27, reflecting growing competitive pressure in international markets and constraints on overseas shipments. According to provisional data compiled by the Solvent Extractors’ Association of India (SEA), total oilmeal exports stood at 12.82 lakh metric tons during April-August 2026, compared with 17.94 lakh tons in the corresponding period of 2025-26.
The decline was particularly sharp in August, when shipments fell 36 per cent year-on-year to 1.77 lakh tons from 2.77 lakh tons in August 2025.
Price disadvantage hits soybean meal
High prices of Indian soybean meal have emerged as a major factor behind the export slowdown. In August 2026, Indian soybean meal was quoted at around $622 per ton, significantly higher than international benchmark prices of approximately $445 per ton.
This substantial price difference weakened the competitiveness of Indian supplies, allowing South American exporters, particularly Argentina and Brazil, to gain a larger share of international markets. The availability of cheaper soybean meal from these countries has made it difficult for Indian exporters to compete on price.
Apart from international pricing pressure, strong domestic demand from livestock and poultry feed manufacturers has also restricted the availability of oilmeals for exports. Disruptions in shipping through the Red Sea and higher maritime freight costs have further increased the difficulties faced by exporters.
Soybean crop outlook adds uncertainty
The domestic soybean supply situation could also influence export prospects in the coming months. The Soybean Processors Association of India (SOPA) has estimated the current kharif soybean crop at 108 lakh tons. However, concerns persist in trade circles that actual production may fall short of this estimate.
Any shortfall in production could put further upward pressure on domestic prices of soybean and soybean meal, potentially widening the price gap with international competitors and affecting export demand.
Rapeseed meal supports shipments
Despite the overall decline, exports of rapeseed meal to Asian markets have provided some support to India's oilmeal trade. China remained the largest destination for Indian oilmeals during April-August 2026, importing 4.01 lakh tons, up 6.83 per cent from 3.75 lakh tons in the corresponding period last year. Rapeseed meal accounted for a major share of these shipments.
Bangladesh was the second-largest importer, with purchases rising 21.89 per cent to 2.17 lakh tons. South Korea imported 1.54 lakh tons, while shipments to Vietnam increased 34.45 per cent to 1.24 lakh tons.
In contrast, exports to Thailand declined 43.91 per cent to 86,675 tons, indicating uneven demand across major Asian destinations.
The contrasting performance of different markets highlights the importance of product-specific demand in sustaining India's oilmeal exports. While rapeseed meal shipments have remained relatively resilient, soybean meal exports continue to face stiff competition from lower-priced global supplies.
Competitive pressure likely to persist
The export outlook will depend on international price movements, domestic availability of oilseeds and the cost of shipping. Unless Indian soybean meal becomes more competitive in global markets, exporters may continue to face difficulties in recovering lost market share.
With domestic feed demand remaining strong and uncertainty surrounding soybean production, the availability and pricing of exportable surplus will also be important factors shaping India's oilmeal trade in the remaining months of 2026-27.