Global pricing pressure drags down Indian oilmeal exports 36% in August

Indian oilmeal exports experienced a 36% decline in August due to pricing pressures in international markets, according to the Solvent Extractors’ Association of India (SEA). The country exported 1.76 lakh tonnes of oilmeals in August 2026, compared to 2.76 lakh tonnes in August 2025. The overall export of oilmeals during the first five months of the financial year 2026-27 fell to 12.82 lakh tonnes from 17.93 lakh tonnes during the same period in the previous financial year, a decline of 28.5%.

BV Mehta, Executive Director of SEA, stated that Indian soybean meal faced severe pricing pressure in August 2026, with prices trading around $622 per tonne, significantly lower than global benchmarks near $445 per tonne. Factors contributing to the decline include cheaper supplies from South American producers like Argentina and Brazil, strong domestic demand from livestock and poultry feed manufacturers, and persistent disruptions in the Red Sea shipping routes and elevated maritime freight costs.

Soybean meal shipments from India dropped to 2.05 lakh tonnes from April-August 2026-27, down 73% from the corresponding period in 2025-26. The SOPA, an industry body, estimates current kharif soybean crops at 108 lakh tonnes, but there is some skepticism about this estimate. This decline in exports has led to an increase in domestic prices of beans and meals.

Despite the slump in soybean meal exports, rapeseed meal exports to key Asian destinations such as China, Bangladesh, and Vietnam provided a partial cushion. During April-August 2026-27, China imported 4.01 lakh tonnes of oilmeals from India, including 3.94 lakh tonnes of rapeseed meal, 4,528 tonnes of soybean meal, and 1,616 tonnes of castor meal.

Similarly, Bangladesh and South Korea imported 2.17 lakh tonnes and 1.53 lakh tonnes of oilmeals, respectively, with significant portions comprising rapeseed meal and soybean meal.