Cheaper soymeal from Brazil and Argentina pushes Indian product out of global markets

India’s oilmeal exports declined by 28.5% in April–August 2026 compared with the same period last year, falling to 1.282 mln tons from 1.793 mln tons. According to the Solvent Extractors’ Association of India (SEA), the main reason was a sharp drop in soymeal shipments, as Indian products have become less competitive in international markets due to significantly lower prices offered by Brazil and Argentina. For comparison, India exported 3.768 mln tons of oilmeals during the full 2025/26 fiscal year.

Soymeal exports recorded the steepest decline, plunging 73% from 757 thsd tons to 205 thsd tons. In August 2026, Indian soymeal was offered on international markets at approximately $622/ton, compared with global benchmark prices of around $445/ton. This made Indian products about $177/ton, or nearly 40%, more expensive. As a result, importers are increasingly favoring cheaper South American supplies, putting additional pressure on Indian exporters.

Other factors contributing to the decline included strong domestic demand for oilmeals from livestock and poultry feed producers, as well as logistics difficulties. Shipping disruptions in the Red Sea and high ocean freight rates have increased international delivery costs. Meanwhile, rapeseed meal exports remained relatively stable at 880 thsd tons, compared with 915 thsd tons a year earlier. Castor meal shipments declined from 106 thsd tons to 96.2 thsd tons, while groundnut meal exports fell from nearly 15 thsd tons to 3.2 thsd tons.

China, Bangladesh, South Korea and Vietnam remained the main buyers of Indian oilmeals in April–August. China increased imports to 401 thsd tons from 375.4 thsd tons a year earlier, with rapeseed meal accounting for almost 395 thsd tons. Bangladesh raised purchases from 178.2 thsd tons to 217.2 thsd tons, while Vietnam increased imports from 92.2 thsd tons to 124 thsd tons. In contrast, South Korea reduced its imports of Indian oilmeals from 209.9 thsd tons to 153.9 thsd tons.

Despite the sharp decline in soymeal shipments, rapeseed meal remains the leading export product of India’s oilseed processing industry, accounting for nearly 69% of total oilmeal exports during the five-month period. The outlook for Indian exporters will depend on price competition with Brazil and Argentina, domestic demand for feed ingredients and ocean freight costs. A continued substantial gap between Indian and international soymeal prices could further limit export shipments.

Tags: oilseeds, India, soybean meal, Argentina, Brazil