Oilseed extractors plan far-East push as oil meal exports slow down

Indian oilseed extractors are planning a far-East outreach to revive oil meal exports amid weak global demand, rising competition from DDGS, and logistical advantages over US suppliers

As part of a mission to revive the sagging market for Indian oil meal exports, which has been passing through a difficult phase over the past few years, a delegation from the Solvent Extractors Association of India (SEA), the country’s leading oilseed extractors’ association, will visit far-Eastern countries such as China, South Korea, Thailand, Vietnam and Japan in April next year.

 

“We are planning to take a delegation to these countries as India enjoys many advantages compared to countries like the US when it comes to oil meals,” BV Mehta, executive director of SEA, told Business Standard.

 

What are oil meals and why are they important export items? 

Oil meal is the protein-rich solid residue left after oil is extracted from oilseeds such as soybean, rapeseed and castor, and is primarily used as high-protein livestock feed and fertiliser.

 

Rapeseed, soybean, rice bran, groundnut and castor seed meals are the major forms of oil meals exported from India. Far-Eastern nations have traditionally been key markets for Indian oil meals as they are extracted from non-genetically modified (GMO) oilseeds.

 

Why is DDGS part of the industry’s export strategy? 

Mehta said promotion of DDGS (dried distillers’ grains with solubles) as an alternative animal feed in place of soymeal is also part of the agenda.

 

Ironically, DDGS has been eating into oil meal demand, particularly that of soymeal. DDGS, a by-product of ethanol production, has hit domestic demand for soymeal from feed manufacturers as it is increasingly preferred as a key raw material. This has dampened soymeal as well as soybean prices, adversely impacting farmers.

 

However, Mehta insisted the dual approach is not contradictory. “DDGS is the reality of life because production of ethanol from grains will continue to happen. Therefore, instead of opposing it, it is better to accept it and move ahead,” he said.

 

As ethanol produced from maize has risen exponentially across the country in the last few years to meet the Centre’s fuel blending target of 20 per cent by 2025, DDGS output has also seen a spike.

 

What advantages does India have over global competitors? 

Mehta maintained that notwithstanding the DDGS dichotomy, there is a need to promote the export market for Indian oil meals in countries such as China.

 

“First, India can send shipments in small batches of 5,000–10,000 tonnes in smaller vessels, while countries such as the US can only ply large Panamax vessels with carrying capacities of over 45,000–50,000 tonnes,” he pointed out.

 

This allows Indian sellers to ship a variety of oil meals in a single consignment. “For example, we can send 5,000 tonnes of soymeal, 5,000 tonnes of rapeseed meal and 5,000 tonnes of rice bran meal in a single ship, which the Americans cannot,” Mehta said.

 

Consignment size apart, shipments from India to the far-East take around eight to 10 days, while those from the US take around 45–50 days, raising logistical costs.

 

“Moreover, India has the capability to deliver oil meals to smaller ports, such as those in Korea, which Americans cannot as their vessels are large,” Mehta said.

 

Why are oil meal exports under pressure? 

The push for exports also stems from the fact that while exports of other agricultural commodities have managed to stay afloat despite pressures from US tariffs,exports of oil meals, which is a major item in the overall agriculture basket, has been rather flat.

 

While there has been some recovery recently, with exports rising in November 2025 in both dollar and rupee terms, the overall trend remains bearish. Latest data show that in November, India exported oil meals worth $104.19 million, a 40.28 per cent increase year-on-year. Between April and November 2025, however, exports dropped by nearly 14.38 per cent from $880 million to $753 million.

 

In rupee terms, exports in November 2025 rose by nearly 47.69 per cent from Rs 627 crore to Rs 925 crore. Exports declined by 11.04 per cent in the April–November period from Rs 7,366 crore to Rs 6,552 crore. Mehta said this was because rice bran meal exports rose in November after the government lifted a ban on exports, and China bought large quantities of rapeseed meal for its poultry and livestock sector.

 

What are global and domestic factors affecting exports? 

“Oil meal exports from India have been declining due to a combination of domestic and global factors. Globally, there is a surplus of soybean meal, primarily from South and North America, which has pushed down international prices and made Indian soymeal less competitive. Additionally, alternative feed ingredients such as DDGS from ethanol production are replacing oil meal in some import markets,” Sudhakar Desai, president of the Indian Vegetable Oil Producers’ Association, told Business Standard.

 

Demand from Europe has also remained subdued due to delays related to the European Union Deforestation Regulation and the availability of cheaper substitutes such as grains, which are competing with oil meals.

 

“On the domestic side, soybean production this year has fallen compared to last year due to a decline in acreage, shifts to alternative crops, and untimely rainfall during the growing and harvest seasons. At the same time, domestic demand for oil meal remains high, leaving less volume available for exports. Overall, these factors, combined with global supply and price pressures, have led to a slowdown in exports from India. Consequently, oil meal exports are expected to be lower this year compared to 2024–25,” Desai said.

 

“Also, soymeal has become cheaper in global markets due to a glut, which is encouraging domestic players to ship out their production,” Mehta said.

 

What do recent export trends show?

  In a statement issued a few days ago, SEA said lifting the ban from October 3 on exports of de-oiled rice bran led to a resumption of shipments, while exports of rapeseed meal were boosted by strong demand from China. China accounted for 651,829 tonnes, around 47 per cent of total rapeseed meal exports, compared to 25,624 tonnes in the same period last year.

 

The association said exports of soybean meal in the last two months, October and November, rose on strong demand from European buyers such as France and Germany.

 

Overall, SEA data showed that India exported around 2.73 million tonnes of oil meals in the April–November 2025 period, 2.75 per cent lower year-on-year, as higher shipments of rapeseed meal and rice bran compensated for the decline in soymeal exports.