India’s Oilmeal Exports to China Surge Over 20 Times Amid Price Advantage, Future Risks Emerge
Sharp Rise in Oilmeal Shipments to China in FY26
India’s oilmeal exports to China have recorded a dramatic surge in the current financial year, rising more than 20-fold during the first eleven months of FY26, driven by strong demand and competitive pricing.According to data released by the Solvent Extractors' Association of India (SEA), exports to China reached 7,79,016 tonnes during April 2025 to February 2026, compared to just 38,240 tonnes in the same period of the previous financial year.
The bulk of these exports comprised rapeseed meal, highlighting China’s increased reliance on India to meet its feed requirements.
Rapeseed Meal Dominates Export Mix
Out of the total shipments to China, rapeseed meal accounted for 7,71,435 tonnes, while castorseed meal contributed 7,581 tonnes during the period under review.The surge reflects a shift in sourcing patterns, with Indian exporters stepping in to fill supply gaps in the Chinese market.
Competitive Pricing Drives Demand
SEA Executive Director BV Mehta attributed the sharp increase in exports to India’s pricing advantage over global competitors.Indian rapeseed meal is currently priced at around USD 225 per tonne on an FOB/FAS Kandla basis. In comparison, rapeseed meal from European suppliers is priced significantly higher at USD 297 per tonne.
This price differential made Indian supplies more attractive to Chinese buyers, boosting export volumes.
Tariff Dynamics Played a Key Role
Trade policy developments also supported India’s export growth. In March 2025, China imposed a 100 per cent tariff on Canadian rapeseed meal and oil in response to Canada’s tariff on Chinese electric vehicles.These tariffs rendered Canadian exports economically unviable, prompting China to seek alternative suppliers. India emerged as a key beneficiary, bridging the supply gap created by the restrictions.
However, the outlook has shifted. China has suspended the 100 per cent tariffs on Canadian canola meal effective March 1, 2026, with the suspension set to remain in place until December 31, 2026.
This move is expected to intensify competition, making it challenging for Indian exporters to retain their expanded market share in China.
Overall Oilmeal Exports Under Pressure
Despite the strong performance in the Chinese market, India’s overall oilmeal exports have shown a declining trend.In February 2026, total exports dropped 22 per cent to 2,57,961 tonnes, compared to 3,30,319 tonnes in February last year.
For the April 2025 to February 2026 period, overall exports declined 11 per cent to 34,93,823 tonnes, down from 39,33,349 tonnes in the corresponding period of the previous fiscal.
Geopolitical Tensions Disrupt Trade Routes
The SEA highlighted that escalating geopolitical tensions involving the United States, Israel, and Iran have significantly disrupted India’s oilmeal export flows, particularly to key markets in the Middle East and Europe.Instability around the Strait of Hormuz and the Red Sea has created major logistical challenges.
Approximately 20 per cent of India’s oilmeal exports destined for West Asia and 15 per cent meant for Europe are currently at risk due to shipping disruptions.
Shipping Delays and Rising Costs Impact Exports
Shipping companies are increasingly avoiding the Red Sea and the Strait of Hormuz, leading to longer routes and higher transportation costs.The diversion via the Cape of Good Hope has added 10 to 15 days to transit times, resulting in delays and container shortages.
These logistical challenges are affecting the continuity of exports and raising concerns about India’s competitiveness in global oilmeal markets.
Industry Flags Concerns Over Sustained Disruptions
The SEA has expressed concern that prolonged geopolitical tensions could continue to hamper shipments, particularly in agricultural commodities such as oilmeals.Sustained disruptions may weaken India’s position in key export markets, even as competition intensifies following changes in global trade policies.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.