Oilmeal Exports Decline for Fifth Consecutive Month, March Shipments Fall 33% Amid West Asia Crisis

India’s oilmeal exports declined for the fifth consecutive month in March 2026, with shipments falling sharply due to disruptions in the Red Sea shipping route and rising freight costs linked to the West Asia crisis.

India exported 2.75 lakh tonnes of oilmeal in the last month of fiscal year 2025-26, compared with 4.09 lakh tonnes in March 2025, marking a steep 33 percent decline. The downward trend in exports has continued since November 2025.

According to data released on Tuesday by the Solvent Extractors' Association of India, total oilmeal exports during fiscal 2025-26 declined 13 percent to 37.68 lakh tonnes from 43.42 lakh tonnes in 2024-25. India had exported 48.85 lakh tonnes of oilmeal in 2023-24.

In value terms, oilmeal exports stood at Rs 9,340 crore during 2025-26, significantly lower than Rs 12,171 crore recorded in the previous fiscal. In 2023-24, oilmeal exports were valued at Rs 15,368 crore.

Soymeal exports nearly halved in March compared with February 2026. Soymeal exports stood at 63,019 tonnes in March against 1,12,869 tonnes in February. However, rapeseed meal exports increased from 99,208 tonnes to 1,57,291 tonnes during the same period. Rice bran extract exports also rose from 23,925 tonnes to 38,486 tonnes, while castor seed meal exports declined to 15,996 tonnes from 21,763 tonnes.

The association attributed the sharp decline in exports mainly to disruptions in the Red Sea shipping route, which has substantially increased freight costs. In addition, suppliers from South America and Europe have been offering oilmeal at more competitive prices in the global market.

India's oilmeal exports to China skyrocketed, hitting 8.78 lakh tonnes during the April 2025–March 2026. 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% tariff on Canadian rapeseed/canola meal.
  
According to SEA, Indian soybean meal exports remain uncompetitive globally due to price disparities with major producers like Argentina and Brazil. Furthermore, domestic livestock feed makers have increasingly shifted toward cheaper alternatives like DDGS (by-product of ethanol) at the cost of soymeal and other oilmeals.
 
Geopolitical conflicts have forced shipping companies to bypass the Red Sea. Detouring around the Cape of Good Hope has added 10-15 days to shipping journeys, creating container shortages and inflating freight costs.  Approximately 20% of India's oilmeal exports (destined for West Asia) and 15% (destined for Europe) are highly vulnerable to these logistical delays and costs.