News Capsule: India: Oilmeal Exports Decline Amid Geopolitical Tensions
17-Mar-2026 12:42 PM
News Capsule: India: Oilmeal Exports Decline Amid Geopolitical Tensions
★ India’s oilmeal exports dropped to 258,000 tonnes in February 2026, down 22% from 330,000 tonnes in February 2025.
★ During April 2025 to February 2026, total exports stood at 3.49 million tonnes, marking an 11% year-on-year decline.
★ Rising tensions between the United States/Israel and Iran have significantly impacted India’s oilmeal exports. Instability around the Red Sea and the Strait of Hormuz has disrupted shipping routes, putting exports to the Middle East (about 20%) and Europe (about 15%) at risk.
★ Shipping companies are avoiding the Red Sea route, increasing transit time and costs. Some agricultural exports have temporarily stalled. Crude oil prices have crossed $100 per barrel, raising freight and insurance costs. Rerouting via the Cape of Good Hope is adding 10–15 days to shipments.
★ Exports of rapeseed meal to China face a new challenge. Between April and February, China imported about 0.77 million tonnes from India, supported by competitive pricing (around $225/ton).
★ However, from March 1, 2026, China has removed the 100% tariff on Canadian rapeseed meal, which is expected to intensify competition for Indian exporters.
★ Soybean meal exports have also weakened. During April–February, exports were 1.49 million tonnes, down 23% from 1.94 million tonnes last year. Higher Indian prices (around $483/ton) have reduced global competitiveness.
★ Rapeseed/mustard production for 2025-26 is estimated at 11.73 million tonnes. A roughly 4% depreciation of the rupee has offered some support to exporters, but overall exports remain under pressure due to high prices and ongoing global disruptions.