Business · India Bureau
India's oilmeal exports plunge 28.5% as soybean meal faces South American competition
India's oilmeal shipments declined sharply in the first five months of the fiscal year, with soybean meal exports hit particularly hard by cheaper supplies from Brazil and Argentina. The sector faces mounting headwinds from both international price pressures and persistent shipping disruptions.
LSN India ·
India's oilmeal exports contracted 28.51 per cent to 12.82 lakh tonnes during April-August of fiscal 2025-26, compared with 17.93 lakh tonnes in the corresponding period last year, according to the Solvent Extractors' Association of India (SEA).
Soybean meal—a key constituent of India's oilmeal exports used primarily as animal feed—bore the brunt of the decline, plummeting 73 per cent to 205,000 tonnes from 757,000 tonnes year-on-year. Industry officials attributed the sharp drop to mounting competitive pressure from South American producers offering significantly lower prices in international markets.
Indian soybean meal traded at approximately USD 622 per tonne in August, substantially above global benchmarks hovering near USD 445 per tonne, the SEA noted in a statement. The substantial price differential has made Indian supplies less competitive globally, allowing cheaper shipments from Argentina and Brazil to capture greater market share.
Domestic demand from India's livestock and poultry feed sector has provided some support to the oilmeal industry. However, ongoing disruptions to maritime routes through the Red Sea have compounded export challenges by increasing shipping costs and delaying deliveries. Full-year oilmeal exports for fiscal 2025-26 currently stand at 37.68 lakh tonnes.