India's Interest in Importing Edible Oils from China Rises

27-Mar-2026 01:18 PM

Mumbai: Domestic market prices for edible oils have surged by 10–15 percent due to disruptions in imports from Latin America and the Black Sea region. As an alternative measure, Indian importers are now showing significant interest in sourcing edible oils from China, given that the maritime route between India and China remains safe for transit.

The maritime routes in the region have become unsafe due to the Iran-Israel conflict, leading to a substantial rise in freight and insurance costs. Consequently, Indian refiners are compelled to seek alternative suppliers—such as China—to increase their procurement of edible oils.

According to available data, during the first four months of the current marketing season—specifically from November 2025 to February 2026—India imported 14,963 tonnes of palm oil and 175,502 tonnes of crude soybean oil from China. In contrast, only 36,000 tonnes of edible oil were imported from that source during the entire 2024–25 marketing season (November–October).

It is understood that importing soybean oil from China proves to be more economical. The prevailing export offer price from China stands at approximately $1,100 per tonne, which is lower than that offered by Argentina.

Furthermore, the geographical proximity between China and India results in lower shipping costs and ensures that soybean oil reaches India in a shorter timeframe. According to industry analysts, the utilization of this trade route is likely to continue, as it will assist Indian refiners in replenishing their edible oil stocks and maintaining price stability. Typically, India primarily imports soybean oil from Latin American nations such as Argentina and Brazil.