India’s oil meal exports saw a modest growth of 5% in October 2024, according to data from the Solvent Extractors Association of India (SEA). Total exports during the month reached 305.7 thousand tonnes, up from 289.9 thousand tonnes in October 2023. This increase comes despite a significant decline in the export of rapeseed meal, which fell to 0.16 million tonnes compared to 0.17 million tonnes in the same month last year.

While October showed growth, the overall export performance for the first seven months of the meal year (April–October 2024) declined.

• Total exports for the April–October period stood at 2.3 million tonnes, down 7% from 2.5 million tonnes during the same period in 2023.
• The drop was largely attributed to lower exports of rapeseed meal and castor seed meal, which faced challenges in international markets due to higher prices and reduced demand.

1. Soybean Meal Exports Surge
   • Exports of soybean meal jumped significantly to 1.02 million tonnes, up from 0.67 million tonnes in the same period last year.
   • This growth was fueled by increased demand from major importers such as the UAE, Iran, and France.
2. Rapeseed Meal Exports Decline
   • Exports of rapeseed meal fell sharply by over 25%, dropping to 1.17 million tonnes from 1.5 million tonnes in the previous year.
   • The decline was driven by higher prices in international markets, which made Indian rapeseed meal less competitive.
3. Castor Seed Meal Shipments Fall
   • Shipments of castor seed meal reduced to 27.9 thousand tonnes, down from 31.4 thousand tonnes during the same period last year.

The SEA highlighted concerns over the competitiveness of Indian oil meals in global markets. To address these challenges, the association has urged the government to provide a 15% incentive through:

• Increased transportation subsidies to offset high logistics costs.
• Interest subsidies to reduce financial strain on exporters, Other measures to make Indian oil meals more price-competitive internationally.

While soybean meal exports show promise, the overall performance of India’s oil meal sector is under pressure due to pricing challenges and reduced demand for key products like rapeseed and castor seed meal. Strategic government support could help bolster exports and maintain India’s position in the global market. India’s oil meal exports experienced mixed fortunes in October 2024, with growth in soybean meal offsetting declines in rapeseed and castor seed meal. Continued collaboration between industry stakeholders and the government will be essential to ensure sustained growth in the coming months.

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Source: Solvent Extractors Association of India (SEA), Business Standard