According to Solvent Extractors Association of India (SEA), in the first 11 months of this financial year, exports of oilmeal from India to China increased more than 20 times to 7.79 lakh tonnes. The main reason for this was the low prices of Indian goods, due to which China purchased more.
During the same period last year, India had sent only 38,240 tonnes of oilmeal to China, whereas this time it increased to 7,79,016 tonnes. Most of this was rapeseed meal (mustard cake).
Cheap goods become India’s strength
According to SEA Executive Director BV Mehta, India’s rapeseed meal price is around $225 per ton, which is much cheaper than Europe. This is the reason why China imported more than India.
Canada got benefit from controversy
In March 2025, China imposed 100% tariffs on Canadian rapeseed meal and oil because Canada had taxed Chinese electric vehicles. Due to this, Canadian goods became expensive and China looked for other suppliers. India got the maximum benefit from this.
Now the collision may increase
However, effective March 1, 2026, China has removed 100% of the tariffs imposed on Canada (until December 31, 2026). Due to this, Indian exporters may now have to face tough competition.
Decline in total exports
India’s total oilmeal exports declined by 22% to 2.57 lakh tonnes in February 2026. At the same time, total exports fell by 11% in the entire 11 months to 34.93 lakh tonnes.
impact of middle east tension
According to SEA, India’s exports have been affected due to increasing tension in the Strait of Hormuz and Red Sea. About 20% of exports go to West Asia and 15% to Europe, which is now in danger. Shipping companies are avoiding these routes, due to which both time and cost are increasing.
Shipping problems are increasing
Now ships have to go via Cape of Good Hope, which is taking 10-15 more days. Due to this, the problem of shortage and delay of containers is also increasing. Overall, India is currently benefiting from good demand from China, but further pressure on exports may increase due to Canada’s withdrawal and global tensions. The industry will have to adopt new strategies to maintain its competitiveness.