India’s oilmeal exports experienced a significant contraction in the fiscal year 2024–25, falling by 21% in value terms to Rs. 12,171 crore. This decline was primarily driven by an 11% drop in export volumes, with reduced shipments of rapeseed and castorseed meals being the key contributors. Despite ongoing political uncertainty, Bangladesh remained India’s top oilmeal importer, followed by South Korea and Thailand. The data, compiled by the Solvent Extractors' Association of India (SEA), reflects not only softer global demand but also sector-specific constraints impacting India’s agri-export performance in recent quarters.
Export Performance: Volumes and Value Take a Hit
According to SEA's official data, India’s total oilmeal exports declined to 43.42 lakh tonnes in 2024–25, down from 48.85 lakh tonnes in the previous fiscal—a drop of approximately 11%. This fall in volume translated into a sharper decline in export earnings, which dropped by 21% from Rs. 15,368 crore in 2023–24 to Rs. 12,171 crore in 2024–25. This dual decline in both quantity and value reflects a combination of subdued global demand, heightened competition from alternative suppliers, and a moderation in prices across key categories of oilmeals. Industry analysts suggest that volatile commodity markets and logistical bottlenecks also likely contributed to this downward trajectory.
Rapeseed and Castorseed Meals See Steepest Falls
Among the various oilmeal categories, rapeseed meal and castorseed meal recorded the most significant downturns. While soymeal has traditionally been a more volatile segment, the drop in these two categories has had a disproportionate impact on total export figures due to their relative importance in India's export basket. The decline underscores broader challenges in India’s oilseed processing ecosystem, including price competitiveness, raw material availability, and evolving international trade dynamics. Exporters also contend with inconsistent demand from traditional markets, often shaped by domestic agricultural and industrial trends in those importing nations.
Top Importing Nations: Shifts in Demand Patterns
Bangladesh: Still in the Lead Despite Dip
India's largest oilmeal customer, Bangladesh, imported approximately 7.42 lakh tonnes in FY25, down 17% from 8.93 lakh tonnes the previous year. Political uncertainties in the country have had minimal impact on trade continuity, but domestic consumption and shifting import policies may have contributed to the reduced volume.
South Korea: A Close Second
South Korea retained its position as the second-largest importer, purchasing 6.99 lakh tonnes of oilmeals—16% lower than the previous year. The reduction likely reflects a mix of market correction and strategic stockpiling policies by Korean buyers amid global price fluctuations.
Thailand: Notable Drop in Imports
Thailand imported 4.48 lakh tonnes of Indian oilmeals during the year, representing a steep 25% drop from 6.33 lakh tonnes in FY24. The significant decline raises concerns over India’s pricing and product competitiveness in Southeast Asia, a region historically seen as a dependable export destination.
Sector Outlook and Strategic Considerations
The sharp decline in oilmeal exports comes at a time when India is attempting to ramp up its overall agri-export portfolio. With global food and feed markets experiencing heightened volatility due to macroeconomic stress, geopolitical shifts, and climate-linked agricultural disruption, exporters face mounting pressure to adapt.
To restore export momentum, Indian oilmeal producers may need to focus on:
- Product diversification: Exploring value-added or specialty feed segments.
- Price competitiveness: Reducing costs through improved supply chain efficiencies.
- Market expansion: Tapping into untapped or under-served markets in Africa, Central Asia, and Latin America.
- Policy support: Engaging with trade bodies to negotiate favorable bilateral agreements and address non-tariff barriers.
The government and industry bodies such as SEA could also consider initiating trade promotion campaigns or collaborating with international partners to revive demand.
Conclusion: A Critical Inflection Point
India’s oilmeal export downturn in FY25 is more than just a statistical blip; it signals a sector under pressure to evolve in the face of changing global dynamics. While traditional buyers like Bangladesh and South Korea remain engaged, the overall demand contraction warrants a recalibration of strategy—from pricing models to market outreach. For Indian exporters, this period offers both a challenge and an opportunity to innovate and reposition themselves in the global oilmeal value chain.
Comments