India’s Oilmeal Exports to China Jump Over 20-Fold Despite Emerging Trade Risks

India’s oilmeal exports to China recorded a sharp surge in the first eleven months of the current fiscal, driven by strong demand and competitive pricing. Data from the Solvent Extractors’ Association of India (SEA) showed that shipments rose more than 20‑fold compared to the same period last year.

China accounted for a significant share of the spike, especially in rapeseed meal purchases. However, industry representatives have cautioned that future demand could face headwinds due to policy changes in China and escalating geopolitical disruptions affecting global trade routes.

Surge Driven by Price Advantage and China’s Import Demand

India exported 7,79,016 tonnes of oilmeals to China during April 2025–February 2026, a steep rise from 38,240 tonnes in the corresponding period of the previous fiscal. The bulk of these exports comprised 7,71,435 tonnes of rapeseed meal, supported by an additional 7,581 tonnes of castorseed meal.

SEA attributed the surge to India’s cost advantage over global competitors, particularly at a time when Chinese buyers were scouting for affordable feedstock. The increase in shipments underscores China’s growing reliance on Indian oilmeals amid market volatility and feed industry demand cycles.

Tariff Suspension on Canadian Canola Meal May Limit Future Gains

Despite strong export momentum, SEA has warned of emerging risks ahead. China has suspended its 100% tariffs on Canadian Canola (rapeseed) meal, effective March 1, 2026, through December 31, 2026. This change could shift procurement preferences, as Canadian supplies may regain competitiveness in the Chinese market.

The development raises concerns that India’s recent export surge may moderate if Chinese buyers diversify away from Indian rapeseed meal. SEA noted that pricing dynamics and trade policy adjustments will play key roles in shaping export volumes over the next few quarters.

Overall Oilmeal Exports Fall Amid Global Disruptions

India’s overall oilmeal exports dipped in February 2026 to 2,57,961 tonnes, compared to 3,30,319 tonnes in the same month last year. For the April–February period, total shipments fell 11% to 34,93,823 tonnes, down from 39,33,349 tonnes in the preceding fiscal.

SEA stated that the ongoing conflict involving the United States, Israel and Iran has severely disrupted shipping routes near the Strait of Hormuz and the Red Sea. These regions are critical for trade flows to West Asia and Europe, which together account for 35% of India’s oilmeal export market.

Logistics Challenges and Longer Shipping Routes

Transport disruptions have forced exporters to reroute shipments via the Cape of Good Hope, adding 10–15 days to transit times. The extended routes have caused container shortages, higher freight costs and delays in deliveries.

These factors are weakening India’s export competitiveness, especially in price-sensitive segments such as oilmeals. Key risks include longer routes, delays in West Asia and Europe, container shortages and rising freight rates impacting margins.

Read More: Indian Edible Oil Buyers Seek Prompt Shipments as Rising Prices and Freight Costs Disrupt Imports.

Conclusion

India’s oilmeal exports to China witnessed exceptional growth this fiscal, driven by competitive pricing and strong demand for rapeseed meal. However, the sustainability of this surge remains uncertain, with China’s suspension of tariffs on Canadian canola meal potentially altering sourcing patterns.

Broader geopolitical tensions and trade route disruptions are also weighing on India’s overall export performance. Industry expects continued volatility, with export competitiveness likely to depend on policy stability, logistics normalisation and global market conditions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.