India Oilmeal market size is expected to be valued at US$ 8.7 billion in 2026 and projected to reach US$ 13.4 billion by 2033, growing at a CAGR of 6.3% between 2026 and 2033. Oilmeal plays a vital role in the country's agricultural and animal nutrition sectors, serving as a key source of protein-rich feed for poultry, dairy, aquaculture, and livestock industries.

Oilmeal is produced as a by-product of oilseed crushing, with soybean meal, rapeseed/mustard meal, and cottonseed meal accounting for the majority of production. The market is supported by India's large oilseed cultivation base, expanding feed industry, and growing export opportunities. Rising demand for high-quality animal protein, increasing commercial livestock farming, and investments in oilseed processing infrastructure are driving market expansion, positioning India as an important supplier in the global oilmeal trade.

Drivers - Rapid Expansion of India's Poultry and Livestock Sector

India's poultry industry is the single largest and fastest-growing consumer of oilmeal particularly soybean meal making the sector's structural expansion the most consequential demand driver for oilmeal producers and traders operating in the country. According to the Department of Animal Husbandry & Dairying (DAHD), India's poultry meat production crossed 4.8 million tonnes in 2023–24, with the industry growing at approximately 8–10% annually over the past decade.

The National Action Plan for Egg and Poultry 2022 targets doubling egg production to 120 billion eggs and broiler meat output to 6 million tonnes by 2025 a policy commitment that directly translates into sustained feed ingredient procurement demand. Soybean meal, which constitutes approximately 25–35% of commercial broiler feed formulations, benefits most directly from this expansion. Rising urbanization and growing middle-class protein consumption are also accelerating organized dairy and aquaculture production, further diversifying oilmeal demand across feed segments beyond poultry.

Rising Oilseed Crushing Capacity and Government Support for Oilseed Cultivation

India's domestic oilseed crushing industry is undergoing a capacity expansion cycle driven by favorable government policy and rising demand for both edible oil and oilmeal co-products a dynamic that simultaneously boosts oilmeal supply and sustains competitive pricing across feed industry procurement channels. The National Mission on Edible Oils – Oil Palm (NMEO-OP) and the National Food Security Mission (Oilseeds) are incentivizing oilseed cultivation area expansion, with the Ministry of Agriculture and Farmers Welfare targeting an increase in total oilseed production to 50 million tonnes by 2025–26 from approximately 39 million tonnes in 2022–23. Soybean cultivation in Madhya Pradesh, Maharashtra, and Rajasthan alongside mustard expansion in Rajasthan and Haryana, is creating growing raw material availability for crushing facilities. Higher crushing throughput directly expands oilmeal production volumes, keeping domestic feed grade prices competitive and supporting India's export competitiveness in soybean and rapeseed meal markets in South and Southeast Asia.

Restraints - Oilseed Price Volatility and Import Dependence on Edible Oils

India's dependence on edible oil imports the country imports approximately 60–65% of its edible oil requirements annually according to the Solvent Extractors' Association of India (SEA) directly distorts the economic calculus of domestic oilseed crushing, as crushing decisions are driven primarily by edible oil margin rather than oilmeal demand. When global edible oil prices fall relative to domestic oilseed procurement costs, crushers reduce throughput, constraining oilmeal availability and creating feed industry supply disruptions. USDA Foreign Agricultural Service data shows India's soybean crushing volumes fluctuate significantly year-on-year in response to oilseed harvest variability, affecting oilmeal price stability and complicating feed compounders' procurement planning cycles.

Aflatoxin Contamination and Export Quality Compliance Challenges

Aflatoxin contamination in groundnut meal and cottonseed meal driven by inadequate post-harvest storage and drying infrastructure across producing states poses a persistent barrier to premium market access for Indian oilmeal exporters and limits domestic feed mill adoption of affected product streams. The Food Safety and Standards Authority of India (FSSAI) and importing country regulators including the European Food Safety Authority (EFSA) enforce strict aflatoxin limits of 10–20 ppb in feed ingredients, and Indian consignments have faced repeated rejection at EU ports due to non-compliance. This quality risk suppresses export realization premiums for affected oilmeal types and increases compliance costs for processors investing in mycotoxin testing and storage infrastructure, reducing profitability margins in quality-sensitive market segments.

Opportunities - Aquaculture Feed Expansion and Rising Demand for High-Protein Oilmeal Ingredients

India's rapidly growing aquaculture sector the world's second-largest fish producer and one of the fastest-growing shrimp exporters is creating compounding demand for protein-rich feed ingredients including soybean meal, rice bran meal, and sunflower meal, offering oilmeal producers an opportunity to diversify revenue beyond the dominant poultry feed channel. The National Fisheries Development Board (NFDB) reports that India's aquaculture output reached approximately 10 million tonnes in 2022–23, with shrimp production growing at over 12% annually.

The Pradhan Mantri Matsya Sampada Yojana (PMSSY) has allocated Rs. 20,050 crore for fisheries sector development through 2025, including feed infrastructure investment. High-protein soybean meal is increasingly substituting fishmeal in aquafeed formulations as fishmeal prices rise globally, with research from the Central Institute of Fisheries Technology (CIFT) validating soybean meal inclusion rates in shrimp and fish diets. Oilmeal processors with aquaculture-grade product lines and consistent aflatoxin-free certification are best positioned to capture this emerging, high-value feed segment.

Export Market Expansion: Rapeseed/Mustard Meal Demand in Asian and Middle East Feed Markets

India's surging rapeseed/mustard meal production a direct byproduct of the country's mustard oil crushing industry, which has expanded rapidly following the NMEO-OP policy push is generating growing export volumes to South Korea, Thailand, Vietnam, and Gulf Cooperation Council (GCC) countries where rapeseed meal is used in ruminant and aquaculture feeds. According to the Solvent Extractors' Association of India (SEA), India's rapeseed meal exports have grown consistently as domestic mustard crush volumes have increased, with Rajasthan and Madhya Pradesh emerging as key production hubs.

Global rapeseed meal demand is supported by strong EU import requirements, where India's cost-competitive product competes with Canadian and Australian origin supplies and growing ruminant feed sector development in Bangladesh and Myanmar. Companies investing in dedicated mustard meal processing lines, quality certification (including GMP+ and FAMI-QS), and export logistics capabilities are positioned to capture disproportionate share of this fast-growing, margin-accretive export opportunity through 2033.

Product Type Insights

Soybean meal commands the dominant position in the India Oilmeal market with approximately 29% share in 2025, anchored by its role as the primary high-protein feed ingredient across the country's poultry, aquaculture, and compound feed industries. India ranks among the world's top soybean processing nations, with the Soybean Processors Association of India (SOPA) reporting annual soybean crush volumes consistently above 8–9 million tonnes in recent years, generating soybean meal output of approximately 6–7 million tonnes annually. Soybean meal's nutritional profile with crude protein content of 44–48% makes it the benchmark ingredient in broiler and layer feed formulations, reinforcing its structural dominance. Rapeseed/Mustard meal is the fastest-growing product type through 2033, driven by expanding mustard crushing capacity and rising export demand from Asian ruminant feed markets.

Application Insights

Poultry feed is the dominant application segment, accounting for approximately 52% of India's oilmeal consumption in 2026, reflecting the poultry industry's position as the largest and most organized animal protein sector in the country. India's commercial poultry sector, comprising an estimated 700 million broilers and over 330 million egg-laying hens in production at any given time according to the Poultry Federation of India relies heavily on soybean and cottonseed meal as core protein ingredients in nutritionally balanced feed formulations. The National Action Plan for Egg and Poultry and growing per capita poultry meat consumption driven by urbanization, cold chain expansion, and QSR growth ensure that poultry feed remains the anchor demand channel for oilmeal through 2033. Aquaculture feed is the fastest-growing application, supported by India's shrimp export ambitions and the substitution of fishmeal with high-protein plant-based meals.

Sales Channel Insights

The domestic sales channel accounts for approximately 68% of India's oilmeal market in 2025, reflecting the primary consumption of oilmeal by India's large organized and semi-organized feed compounding industry, integrated poultry farms, and livestock cooperatives. Domestic demand is driven by the feed mill industry's growth the All India Poultry Breeders Association (AIPBA) and Feed Manufacturers' Association estimate that India's compound feed production has been growing at 8–10% annually creating a large, price-sensitive but volume-reliable domestic procurement base. The export channel is the fastest-growing segment with India's competitively priced soybean and rapeseed/mustard meal gaining consistent market share in Asian and Gulf feed markets, supported by the Agricultural and Processed Food Products Export Development Authority (APEDA) export promotion initiatives.

West India Oilmeal Market Trends and Insights

West India is the dominant region, commanding approximately 46% of the India oilmeal market in 2026, driven by the highest concentration of soybean crushing capacity in Madhya Pradesh and Maharashtra India's two largest soybean-producing states alongside active cottonseed and groundnut processing operations in Gujarat The region houses major oilmeal processing clusters in Indore, Latur, and Rajkot, with established export logistics through Mundra and JNPT ports. West India's dominance is structurally stable, underpinned by oilseed production concentration, processing infrastructure investment, and the headquarters presence of leading companies including Adani Wilmar, Ruchi Soya, and Gokul Agro.

Madhya Pradesh Oilmeal Market Size

Madhya Pradesh is the single largest oilmeal-producing state in India, accounting for approximately 60% of West India's oilmeal output, driven by its status as India's top soybean-cultivating state with annual production exceeding 5 million tonnes in good harvest years. The state hosts a dense cluster of solvent extraction plants and expeller units around Indore, Ujjain, and Dewas. Capacity utilization improvements and new crushing investments are expected to sustain Madhya Pradesh's leadership in soybean meal production through 2033.

North India Oilmeal Market Trends and Insights

North India is the fastest-growing regional segment, driven by rapidly expanding mustard/rapeseed crushing capacity in Rajasthan and Haryana India's leading mustard-producing states alongside growing poultry and dairy feed demand in Uttar Pradesh, the country's largest livestock state. The Government of India's focus on mustard cultivation expansion under the National Food Security Mission is directly boosting rapeseed meal output in the region. Rising organized poultry farming clusters around Bareilly, Aligarh, and Haryana's poultry belt are sustaining domestic oilmeal demand growth at above-average regional rates.

Rajasthan Oilmeal Market Size

Rajasthan dominates North India's oilmeal output, contributing approximately 45% of the region's production, known for its status as India's largest mustard-producing state with annual mustard output regularly exceeding 4 million tonnes. The state's expanding solvent extraction capacity in Bharatpur, Alwar, and Kota is converting rising mustard crush volumes into growing rapeseed meal output for both domestic ruminant feed markets and export channels. Rajasthan's trajectory strongly favors continued rapeseed meal production scale-up through 2033.

India oilmeal market is moderately consolidated, with competition driven by integrated oilseed processors, agro-processing companies, exporters, and feed ingredient suppliers. Market participants focus on expanding crushing capacities, improving supply chain efficiency, and strengthening export networks to enhance market presence. Companies are increasingly investing in advanced processing technologies to improve meal quality and protein content while meeting evolving feed industry requirements. Strategic partnerships with feed manufacturers, procurement of oilseeds from key producing regions, and expansion into value-added feed ingredients remain important competitive strategies.

Key Developments

• In July 2025, AWL Agri Business Ltd. (formerly Adani Wilmar) strengthened its position in the Indian food and edible oils sector following Wilmar International's acquisition of a majority stake.
• In July 2024, Adani Wilmar Limited announced plans to invest approximately INR 600 crore to expand its edible oil processing business and increase solar power generation capacity.