India's Oilmeal Exports Slip 21.5% in April as Soybean Meal Loses Ground to South America
A sharp fall in soybean meal shipments dragged India's total oilmeal exports down to 3.65 lakh tonnes in April 2026, with Red Sea disruptions and a steep price gap with South American origins squeezing competitiveness.
The short answer
India's oilmeal exports fell 21.5% year-on-year to 3.65 lakh tonnes in April 2026, from 4.65 lakh tonnes in April 2025, according to the Solvent Extractors' Association of India. The decline was driven almost entirely by a collapse in soybean meal shipments, where Indian FOB prices of $605 per tonne are far above the international benchmark of around $430 per tonne (CIF Rotterdam). Rapeseed meal bucked the trend, rising on robust Chinese demand.
The headline fall
Overall Oilmeal Exports Drop Sharply in April
India shipped 3.65 lakh tonnes (lt) of oilmeals in April 2026, a significant retreat from the 4.65 lt recorded in the same month a year earlier — a decline of 21.5%, according to the Solvent Extractors' Association of India (SEA).
SEA Executive Director BV Mehta pointed to three converging pressures: ongoing Red Sea shipping disruptions, elevated freight costs stemming from vessel diversions around the Cape of Good Hope, and intensifying price competition from South American soybean meal exporters. Together, these factors eroded India's traditional export markets, particularly in Europe and West Asia, where longer transit times have added to landed costs and reduced the attractiveness of Indian origin cargoes.
The soybean problem
Soybean Meal Shipments Collapse on Steep Price Disadvantage
The sharpest blow came from soybean meal, where exports cratered to 62,844 tonnes in April 2026 from 2.30 lt in April 2025 — a near-total wipeout of volumes in just twelve months.
The culprit is a stark pricing mismatch. Indian soybean meal is currently offered at $605 per tonne FOB, against an international benchmark of roughly $430 per tonne CIF Rotterdam — a gap that makes Indian origin deeply uncompetitive on a landed-cost basis.
South American soybean meal, benefiting from large harvests and aggressive pricing, has effectively crowded India out of key global markets. Mehta noted that this price gap, unless narrowed, will continue to suppress Indian soybean meal export volumes in the near term.
In the near term, oilmeal prices are likely to remain range-bound with a weak bias, influenced by the progress of the domestic monsoon, availability of the new oilseed crop, global soybean fundamentals and freight costs. Any improvement in shipping conditions in the Red Sea region or a narrowing of the price gap between Indian and international quotations could support export demand in the coming months.
The bright spot
Rapeseed Meal Rises on Strong Chinese Appetite
Rapeseed meal offered a counter-narrative, with exports climbing to 2.48 lt in April 2026 from 2.13 lt in the same month of 2025, underpinned by robust demand from China.
China alone imported 1.41 lt of rapeseed meal from India in April 2026, a dramatic jump from just 59,921 tonnes in April 2025. Other active buyers during the month included Bangladesh, Vietnam, Thailand, and emerging African markets.
Country-level breakdown for April 2026:
- Bangladesh: 69,272 tonnes total oilmeals, including 60,157 tonnes rapeseed meal
- Vietnam: 49,350 tonnes total, including 20,474 tonnes rapeseed meal and 27,108 tonnes ricebran extractions
Mehta expects rapeseed meal to continue finding support from China and other Asian buyers, provided Indian prices remain competitive.
The near-term outlook
Mixed Demand Signals as Domestic and Export Markets Diverge
The demand picture for Indian oilmeals in the months ahead is, in Mehta's assessment, decidedly mixed. On the domestic front, consumption from the poultry, dairy, and livestock sectors is expected to remain steady — offering a floor for prices. Export demand, however, faces continued headwinds from plentiful South American soybean meal supplies and competitive global pricing.
Mehta flagged several variables that will shape the market:
- Monsoon progress and the availability of the new domestic oilseed crop
- Global soybean fundamentals, including South American supply levels
- Freight costs and any improvement in Red Sea shipping conditions
- Price gap dynamics between Indian and international quotations
Prices, he indicated, are likely to stay range-bound with a weak bias unless one or more of these factors shifts meaningfully in India's favour.
Why it matters
The widening price gap between Indian soybean meal and South American origins is not a short-term blip — it reflects structural cost pressures that Indian exporters cannot easily absorb. With Red Sea diversions inflating freight bills and South American supplies remaining ample, Indian oilmeal's export competitiveness will hinge on monsoon progress, new-crop availability, and any improvement in shipping conditions. Traders and agri-businesses should watch the India–South America price spread closely, while rapeseed meal's growing foothold in China and Asian markets offers a partial but meaningful offset.
Frequently asked
- Why did India's oilmeal exports fall in April 2026?
- The Solvent Extractors' Association of India attributed the 21.5% decline to Red Sea shipping disruptions, higher freight costs due to vessel diversions around the Cape of Good Hope, and intense price competition from South American soybean meal exporters.
- How uncompetitive is Indian soybean meal in global markets?
- Indian soybean meal is currently priced at $605 per tonne FOB, compared to the international benchmark of around $430 per tonne CIF Rotterdam — a significant gap that makes Indian-origin soybean meal difficult to sell in global markets.
- Which oilmeal segment performed well in April 2026?
- Rapeseed meal was the standout performer, with exports rising to 2.48 lakh tonnes in April 2026 from 2.13 lakh tonnes a year earlier, driven largely by strong demand from China, which imported 1.41 lakh tonnes of rapeseed meal from India during the month.
- What is the near-term outlook for Indian oilmeal exports?
- BV Mehta of SEA expects oilmeal prices to remain range-bound with a weak bias. Key variables include monsoon progress, new oilseed crop availability, global soybean fundamentals, freight costs, and whether the price gap between Indian and international quotations narrows. Rapeseed meal is expected to find continued support from China and Asian markets.
Source
This report summarises and analyses coverage from The Hindu BusinessLine — Agri Business. The analysis and India context are IndianAgri's own.