Decline in import of Indian oil meal in major buyer countries

20-Jan-2025 04:14 PM

The decline in India's oil meal exports, especially mustard cake, is a concerning trend for the industry.

Despite the softening of export offer prices, the shipments of Indian oil meal have not been encouraging, with the total export of De-Oiled Cake (DOC) declining by about 10% during the April-December 2024 period, compared to the same months in 2023.

This is primarily driven by reduced demand from major buyer countries such as South Korea, Vietnam, Thailand, Bangladesh, Iran, and Taiwan.

The key statistics reveal a significant drop in exports to these nations. For instance, exports to South Korea fell by 26.73%, while exports to Vietnam plummeted by 46.64%.

Other markets like Thailand, Bangladesh, and Iran also saw substantial declines in their imports from India. While there was an increase in soymeal exports, the overall picture remains one of reduced demand for Indian oil meals.

The softening of prices in December 2024, when compared to the same period in 2023, was not sufficient to revive the exports.

For example, soybean DOC prices dropped from $539 per tonne in December 2023 to $363 per tonne in December 2024, and similar price reductions were seen in mustard cake and castor meal.

However, the export of de-oiled rice bran has been banned for some time, further affecting India's overall oil meal export numbers.

This situation could be attributed to various factors, including changing demand patterns in the global market, increased competition from other oil meal producers, or possibly trade restrictions in certain countries.