India Cuts Interest in Chinese Soybean Oil as Argentine Prices Drop
26-Aug-2025 11:46 AM
Mumbai. Although Indian importers had contracted to buy about 1.50 lakh tonnes of soybean oil from China last month, now they have started shying away from it because the traditional supplier country - Argentina has reduced its export offer of soybean oil considerably.
An importer says that after last month's purchase, no new contract has been signed for import of soybean oil from China. Chinese exporters are also not willing to sell their goods at reduced prices.
Argentina is traditionally the most important supplier of soybean oil to India. In fact, about 65 percent of soybean oil in India is imported from Argentina alone.
When it got information that Indian importers are buying soybean oil from China, it reduced its offer price. On the other hand, in view of Indian purchase, China has increased the offer price. However, global trade is not much affected by the fluctuation of 10-15 dollars per ton.
Data from Solvent Extractors Association of India (SIA) shows that at present the cost of imported crude degummed soybean oil at Mumbai port is $1205 per tonne. Its price has increased by about 2 percent compared to a week ago and about 18.5 percent compared to the same period last year.
Importers had signed contracts with China when the price was running at this level, while on the other hand the cost of importing RBD palmolein is said to be $1105 per tonne.
It is understood that the major companies of the Indian oil industry had contracted for import of soybean oil from two Chinese exporting firms for September and October delivery.
On the other hand, Nepal is regularly exporting refined soybean oil to India and is also sending refined sunflower and mustard-rapeseed oil in small quantities.
It is known that under the South Asia Free Trade Area (SAFTA) treaty, Nepal is allowed to export edible oils duty free to India.
According to the Association (C), Indian importers are very smart and clever. They are also trying to import oil from Vietnam. Rapeseed oil import contract has been signed from UAE.