India's trade deficit with China crosses USD 100 bn in first 9-months

India's oilmeal exports experienced a dramatic 65% decline in July 2026, plummeting to 1.48 lakh tonnes compared to 4.22 lakh tonnes in July 2025, according to the Solvent Extractors' Association of India (SEA). The drastic drop was primarily attributed to uncompetitive soybean meal prices, the availability of cheaper supplies from South America, and increasing freight costs due to disruptions in the Red Sea.

Executive Director BV Mehta of SEA highlighted that Indian soybean meal faced significant competition from Argentina and Brazil, with exports plummeting by nearly 90% year-on-year. In July 2026, soybean meal exports fell to 17,810 tonnes from 1,83,553 tonnes in July 2025. The situation worsened as shipments to Europe and West Asia became more expensive and time-consuming due to the Red Sea disruptions.

Additionally, higher domestic prices for soybean meal and growing demand from poultry and livestock feed manufacturers further diminished the incentive and availability for exports. Compared to international prices of approximately $428 a tonne, Indian soybean meal was quoted at around $613 per tonne, making it completely outpriced in the global market.

The overall oilmeal exports declined to 11.05 lakh tonnes during April-July 2026-27, a 27% fall compared to the same period in 2025-26. While rapeseed meal exports increased to 7.56 lakh tonnes during the first four months of 2026-27, soybean meal exports saw a sharp decline during the same period. China, Bangladesh, and Vietnam emerged as the primary importers of Indian oilmeals.

China imported 3.55 lakh tonnes of oilmeals from India during April-July 2026-27, featuring rapeseed meal, castor meal, and soybean meal. India exported 1.72 lakh tonnes to Bangladesh during the same period, including soybean meal and rice bran extraction, while Vietnam imported 1.08 lakh tonnes, comprising rapeseed meal, rice bran extraction, soybean meal, and groundnut meal.