Global Pricing Pressures Cause Indian Oilmeal Exports to Plummet 36% in August

In August 2026, Indian oilmeal exports experienced a significant downturn, plummeting 36% to 1.76 lakh tonnes compared to 2.76 lakh tonnes in August 2025. This decline is part of a broader trend, with total exports for the first five months of the financial year down 28.5%, amounting to 12.82 lakh tonnes against 17.93 lakh tonnes the previous year. The prevailing pricing pressures in global markets, particularly for soybean meal, have contributed to this substantial drop, with prices for Indian soybean meal hovering around $622 per tonne, starkly higher than the global benchmark at approximately $445 per tonne.

Several factors are driving this downturn. Increased competition from cheaper supplies originating in South America, particularly Argentina and Brazil, is taking a toll on India’s market share. Furthermore, robust domestic demand from livestock and poultry feed manufacturers, compounded by shipping disruptions in the Red Sea and high maritime freight costs, has constrained India’s export capabilities. The Indian soybean meal sector is facing severe operational challenges, with shipment volumes crashing to 2.05 lakh tonnes between April and August 2026, a staggering 73% decrease from the same period in the prior financial year. Meanwhile, while rapeseed meal exports to key Asian markets like China and Bangladesh have provided some stability, they have not been able to offset the losses in soybean meal exports.

In the short term, traders and investors should remain cautious as the pressures on soybean meal exports continue to dominate the landscape. The anticipated soybean crop for the kharif season is projected at 108 lakh tonnes, but there are differing opinions suggesting that actual yields may be lower than expected, contributing to increasing domestic prices. While rapeseed meal exports might provide some reprieve, the competitive prices from South American suppliers and ongoing logistical challenges suggest that volatility is likely to persist in the oilmeal market. Traders should closely monitor price movements and global supply trends to make informed decisions in the coming months.

Source: Market Source

(Expert Note: This report was independently prepared by the Wealthova Commodities team.)