Cottonseed oil-cake market in India

Earlier Report Observations

From 2018 to 2021, the volume of India's cottonseed oil-cake market fluctuated between 3.34 million tons and 3.51 million tons. These changes were primarily driven by annual weather variations in key cotton-growing regions, which directly impacted cottonseed availability and oil cake production. Steady demand from the dairy sector for high-protein cattle feed provided a market base, while competitive pressure from alternative feeds like mustard seed oil cake influenced pricing and consumption.

A significant drop to 2.96 million tons occurred in 2022, linked to reduced cotton harvests and higher raw material costs. The market rebounded to 3.17 million tons in 2023, supported by a 24% growth in India's overall oilmeal exports and a government ban on de-oiled rice bran exports, which increased demand for cottonseed cake as a feed substitute. Advancements in processing technology, such as solvent extraction, also enhanced product quality and market appeal during this period.

In 2024, the government approved the National Mission on Edible Oils - Oilseeds (NMEO-OS) to improve oil extraction efficiency from secondary sources like cottonseed. Simultaneously, industry estimates pointed to a decline in cotton production for the season, affecting raw material supply. The market also continued to benefit from a GST exemption for cottonseed oil cake sold as cattle feed.

Production cottonseed oil-cake in India

In kind, 2017-2020, K t

Globally, India ranked as the second-largest producer of cottonseed oil-cake from 2017 to 2020.

Top producers of cottonseed oil-cake, 2017-2020

World map of production of cottonseed oil-cake, 2017-2020

Following a two-year decline, cottonseed oil-cake production in India rebounded. In 2019, output hit its lowest point at 3,336 thousand tonnes, reflecting a 3.3% drop. The following year, production rose to 3,504 thousand tonnes in 2020, marking a modest 5.0% increase compared to 2019.

Annual dynamics of production in India in kind, 2017-2020, K t

In value, 2017-2020, M $ US

India's cottonseed oil-cake production value grew for the second year in a row. In 2018, it reached its minimum at 759.3 million US dollars, with an 18.1% decrease. The next year, 2019, saw the largest increase at 10.7%. By 2020, output was valued at 851.1 million US dollars, up 1.2% from the previous year. Overall, from 2017 to 2020, production fell by 8.2%, averaging an annual decline of 2.8%.

Annual dynamics of production in India in value, 2017-2020, M $ US

Exports cottonseed oil-cake from India

Exports in kind, t

After two years of losses, India's cross-border shipments of cottonseed oil-cake recovered. In 2018, exports experienced the largest decline at 31.6%. The following year, 2019, recorded the lowest volume at 29,833 tonnes. In 2020, exports rose to 34,489 tonnes, a 15.6% year-on-year increase. Over the 2017-2020 period, exports decreased by 35.6%, with an average annual drop of 13.7%.

Annual dynamics of product's exports from India in kind, 2017-2020, t

From 2017 to 2020, South Korea, Nepal, and Bangladesh were the primary buyers of cottonseed oil-cake from India, accounting for 82.5% of total exports in volume. South Korea led with 49.2%, followed by Nepal at 17.1%, and Bangladesh at 16.1%.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from India in kind, 2017-2020

Exports in value, K $ US

Following a two-year decrease, India's cottonseed oil-cake exports in value terms rebounded. In 2018, the largest decline occurred at 42.9%. The next year, 2019, saw the minimum value at 7,519 thousand US dollars. In 2020, exports reached 8,377 thousand US dollars, up 11.4% from the previous year. Between 2017 and 2020, exports fell by 40.7%, equating to an average annual decrease of 16.0%.

Annual dynamics of product's exports from India in value, 2017-2020, K $ US

From 2017 to 2020, South Korea, Bangladesh, and Nepal played key roles in India's cottonseed oil-cake exports by value, collectively representing 81.6% of total flows. South Korea accounted for 50.3%, Bangladesh for 19.5%, and Nepal for 11.8%.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from India in value, 2017-2020

Imports cottonseed oil-cake to India

Imports in kind, t

The market showed an unstable trend over the period. In 2017, imports were at their lowest point. The following year, 2018, saw the largest increase at 993.1%. Imports peaked in 2019 at 42,017 tonnes. In 2020, deliveries to India totaled 40,139 tonnes, down 4.5% from the previous year. The gap between the peak in 2019 and the trough in 2017 was 22-fold.

Annual dynamics of product's imports to India in kind, 2017-2020, t

Between 2017 and 2020, Benin was the main source of cottonseed oil-cake imports to India, absorbing 93.1% of total imports in volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to India in kind, 2017-2020

Imports in value, K $ US

India's cottonseed oil-cake imports in value terms increased for the third consecutive year. In 2020, imports totaled 1.2% higher than in 2019. Over the 2017-2020 period, imports surged by 2,258.3%, with an average annual growth rate of 186.8%.

Annual dynamics of product's imports to India in value, 2017-2020, K $ US

From 2017 to 2020, Benin dominated India's cottonseed oil-cake imports by value, holding a 92.0% share of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to India in value, 2017-2020