Indian soybean meal prices have significantly outstripped international prices, leading to a staggering decline in oilmeal exports. In July 2026, exports dropped by 65% compared to the previous year, driven by competition from cheaper South American supplies and rising freight costs.
Decline in Oilmeal Exports
The Solvent Extractors’ Association of India (SEA) reported that India’s oilmeal exports plummeted from 4.22 lakh tonnes (lt) in July 2025 to just 1.48 lt in July 2026. This steep decline reflects a year-on-year fall of almost 65%. BV Mehta, Executive Director of SEA, attributed this downturn mainly to the competitiveness of Argentine and Brazilian soy, which offered significantly lower prices.
Specifically, exports of soybean meal saw a dramatic decline of nearly 90%, falling from 1,83,553 tonnes in July 2025 to only 17,810 tonnes in the same month in 2026. The current pricing of Indian soybean meal at approximately $613 per tonne stands in stark contrast to the international figures, which hover around $428 per tonne.
Rising Transportation Costs and Competition
Transportation challenges have also played a significant role in hampering exports. Disruptions in the Red Sea have forced shipping vessels to adapt to longer routes, resulting in heightened freight costs and extended delivery timelines, particularly affecting shipments destined for Europe and West Asia. These rising expenses further weaken the competitiveness of Indian oils in the international market.
Domestic demand for soybean meal among poultry and livestock feed manufacturers has complicated the export landscape. Higher domestic prices reduce the incentive for Indian suppliers to export, coupled with increasing costs associated with shipping. As a result, producers find it challenging to compete on global platforms.
Overall Trends in Oilmeal Shipments
India’s overall oilmeal exports for the first four months of 2026-27 totaled 11.05 lt, a drop of 27% from 15.16 lt in the corresponding period of 2025-26. Mehta noted that this decline is noticeably attributed to weaker soybean meal shipments and intense competition from South American suppliers.
Despite a marginal increase in exports of rapeseed meal, which rose to 7.56 lt during the same period (up from 7.40 lt), it was not enough to cushion the overall decline. The drop in soybean meal exports created pronounced gaps in the export market, currently tapping into demand particularly from key buyers like China, Bangladesh, and Vietnam.
What This Means
The significant drop in Indian oilmeal exports reflects critical issues that could influence future trade policies. For stakeholders in the Indian agriculture sector, the high domestic soybean meal prices combined with rising competition from South America serve as clear indicators of market positioning challenges. These factors underline the need for strategic interventions such as cost management and enhanced logistics capabilities to revive exports and capture global market share.
Frequently Asked Questions
Why have Indian soybean meal exports declined?
Exports have declined due to uncompetitive pricing, rising freight costs, and intense competition from cheaper soy supplies from South America, particularly Argentina and Brazil.
What was the export quantity of soybean meal in July 2026?
In July 2026, soybean meal exports from India were only 17,810 tonnes, a sharp decline from 1,83,553 tonnes in July 2025.
Who are the major importers of Indian oilmeals?
During April-July 2026-27, the major importers included China, Bangladesh, and Vietnam, with China being the largest importer bringing in 3.55 lt of oilmeals.
What factors are contributing to the price difference between Indian and international soybean meal?
The price difference is mainly due to higher domestic prices in India, coupled with cheaper supplies from South America and increased transportation costs stemming from shipping disruptions.
