India's oilmeal exports fall 12.5% to 957,000 tonnes in April-June as soybean meal shipments collapse

India's oilmeal exports fell 12.5% year on year to 957,000 tonnes in April-June, the first quarter of the 2026-27 financial year, according to Solvent Extractors' Association of India (SEA) data reported by Business Standard. Shipments in the same period a year earlier totalled 1.094 million tonnes. High domestic prices and strong local feed demand kept volumes at home, while low and uneven monsoon rainfall in several parts of the country weighed on oilseed crops and the trade built around them.

The monthly trend was weaker than the quarterly average. June exports dropped 30.67% to 217,000 tonnes from 313,000 tonnes a year earlier, indicating that the decline deepened as the quarter went on.

Soybean meal drives the decline

The contraction was concentrated in a single product. Soybean meal exports fell 65% to 169,000 tonnes in the first quarter of 2026-27 from 493,000 tonnes in the corresponding period of 2025-26. Business Standard attributes the drop to elevated domestic soymeal prices and heavy demand from India's animal feed and livestock sectors, which absorbed material that would otherwise have been available for overseas buyers.

Competition and logistics compounded the problem. Cheaper supplies from Argentina and Brazil left Indian soybean meal uncompetitive in global markets. Continued shipping disruption in the Red Sea and higher freight costs, particularly on routes serving traditional Western buyers, further eroded export earnings, according to the same report.

Rapeseed meal limits the damage

Rapeseed meal moved in the opposite direction, with shipments rising to 660,000 tonnes from 531,000 tonnes a year earlier. The increase offset a large part of the soymeal shortfall and held the overall decline to 12.5% rather than something steeper. Strong demand from Asian markets was the main driver. Rapeseed meal now accounts for close to 70% of India's total oilmeal export volume, a concentration that leaves the trade dependent on one product and a narrow group of buyers.

China becomes the largest destination

China emerged as the top destination for Indian oilmeal in April-June, importing 313,000 tonnes against 187,000 tonnes a year earlier. Rapeseed meal accounted for 309,000 tonnes of that volume. Bangladesh and Vietnam made up most of the remainder, with Vietnamese purchases growing by more than half.

• China: 313,000 tonnes, up from 187,000 tonnes, including 309,000 tonnes of rapeseed meal
• Bangladesh: 143,000 tonnes
• Vietnam: 90,559 tonnes, up from 58,067 tonnes

Crush and feed demand outlook

The supply outlook offers little immediate relief. The United States Department of Agriculture has cut its estimate for India's soybean crush by 6% to 8.7 million tonnes on lower production expectations, with soymeal output projected at 7 million tonnes.

Demand for animal feed is projected to rise 25% from an estimated 900,000 tonnes a year as poultry producers increase soybean meal use despite high prices, although that level remains 18% below 2025-26 consumption. Kedia Advisory said high domestic prices and strong local feed demand reduced the supply available for export, while cheaper South American soybean meal weakened India's competitiveness and Red Sea disruption and freight costs added further pressure. Expensive soymeal and freight bottlenecks are keeping India's oilmeal exports under strain, the advisory said, with firm rapeseed meal demand providing the support that is holding shipment volumes up.