India Turns To China, Buys Record Amounts Of Soy Oil For Domestic Need

India-West News Desk

MUMBAI – In a surprising shift in trade dynamics, India has purchased a record 150,000 metric tons of soy oil from China, marking an unusual move away from its traditional suppliers in South America. The purchases, set for delivery between September and December, were driven by sharp price discounts as Chinese exporters sought to offload excess inventory, trade sources said.

India, the world’s largest vegetable oil importer, seized the opportunity for a cost-effective supply.

India fulfills about two-thirds of its cooking oil needs through imports, relying heavily on palm oil from Indonesia and Malaysia, and soy oil and sunflower oil from Latin America, Russia, and Ukraine.

Facing a surplus after record-high soybean imports in May, Chinese oilseed processors are now offering soyoil to India at prices $15–$20 per ton cheaper than comparable shipments from Argentina or Brazil. Chinese crude soy oil, Reuters said, is being sold at around $1,140 per ton, compared to $1,160 from South America.

The shift is notable because China typically imports vegetable oils rather than exports them. However, slowing domestic demand and mounting stocks of both soymeal and soy oil have left Chinese crushers eager to find foreign buyers.

Reuters noted that quicker shipping times also played a role, with Chinese cargoes reaching Indian ports in just two to three weeks—less than half the time it takes from South America.