A steep drop in India’s oilmeal exports this April has spotlighted the sector’s vulnerability to global market headwinds and logistical challenges. As international buyers shift supply chains and freight costs climb, Indian exporters are being forced to adapt to heightened competition and unpredictable shipping routes.Export volumes fall as shipping and price pressures mountSolvent Extractors’ Association of India (SEA), the nation’s oilmeal exports plunged to 365,000 tonnes in April 2026, down from 465,000 tonnes in the same month the year before. This translates to a sharp 21.5 per cent year-on-year decline. Industry leaders attribute the contraction to a combination of Red Sea shipping disruptions, elevated freight rates, and aggressive pricing by South American producers, particularly in the soybean meal segment.South American competition squeezes Indian soybean meal exportsBrazil and Argentina, have leveraged lower production costs and abundant supply to undercut Indian prices. Their competitive edge has contributed to India’s loss of share in traditional and emerging markets. Industry observers note that unless Indian producers can narrow the price gap, the trend is likely to persist.Rapeseed meal offers a bright spot amid export slumpChina and other Asian buyers. China alone imported 141,000 tonnes of rapeseed meal, making it the leading destination for Indian oilmeals last month. The SEA noted that China’s sustained buying, driven by protein needs in its livestock and aquaculture sectors, has helped offset some of the decline in soybean meal exports.Bangladesh and Vietnam also increased their purchases of Indian oilmeals. Bangladesh took in 69,272 tonnes in April, while Vietnam’s imports climbed to 49,350 tonnes, both showing year-on-year growth. These markets primarily sourced rapeseed meal, ricebran extractions, and smaller volumes of soybean meal and ricebran extraction.Geopolitical disruptions reshape trade routesBV Mehta, these diversions have specifically impacted exports to Europe and West Asia, where Indian oilmeals had previously found steady demand.Domestic demand remains steady, but future export prospects mixedIndia’s oilmeal sector at a crossroads
- Markets & Trade
- 4 min Read
India’s oilmeal shipments hit by weak global demand and shipping disruptions
India’s oilmeal exports fell by 21.5% in April 2026, as per the SEA, with shipping disruptions and aggressive South American competition eroding demand. Rapeseed meal exports to China provided some relief.