India’s oilseed sector is facing headwinds, with exports of both rapeseed and soybean meal declining despite strong production trends. Rapeseed output for 2026 is expected to reach a record 11.7 million tonnes; however, lower carryover stocks are likely to offset the gains, limiting overall availability. According to Germany-based Oil World, the coming 2026–27 season may see a slowdown in rapeseed processing after several years of expansion, driven by constrained domestic supply and evolving global market dynamics.
Export performance has already weakened. Rapeseed meal shipments fell by 32% to around 356,000 tonnes during October–January 2025/26, largely due to uncompetitive pricing. Demand from key markets is expected to soften further, particularly as new trade arrangements between China and Canada could reduce India’s share in the Chinese market.
The soybean segment reflects a similar trend. Soybean meal exports declined by 30% over the same period, reaching approximately 425,000 tonnes. Higher domestic prices compared to global benchmarks have reduced India’s competitiveness, leading to a sharp drop in demand from European buyers.
External factors are also adding pressure. Ongoing geopolitical tensions in West Asia have increased freight costs and disrupted supply chains, further impacting export viability.
Overall, while production remains relatively strong, India’s oilseed meal exports are being challenged by pricing disadvantages, shifting trade relationships, and global logistical uncertainties, signalling a period of adjustment for the sector.
