Nine Indian companies, including Patanjali Foods, Adani Wilmar and multinational companies such as Cargill, Bunge, ADM and Louis Dreyfuss, have signed deals with two Chinese exporters to import soyabean oil between September and December this year.
While a record 1.5 lakh tonnes have been signed for imports, more shipments of the soft oil will likely take place if the offer prices continue to be competitive, trade sources said.
The edible oil is being shipped from China by Cosco, a company owned by the Chinese government, and a private firm. Officials in New Delhi said other firms that are importing soyabean oil from China are Emami Agrotech, Gemini Edibles and Fats and Gokul Agro Resources.
Unusual event
The soft oil is being imported from China, an unusual development, as importers are getting it $15-20 lower than from Argentina and Brazil, while the time to get the consignments is a couple of weeks, against 45 days from the Latin American origins.
According to the Solvent Extractors Association of India (SEA), the landed prices of degummed soyabean oil in Mumbai are $1,205 a tonne cost and freight, while RBD palmolein is $1,070 and sunflower oil $1,230.
BV Mehta, SEA Executive Director, said China has surplus soyabean and it is shipping out soya oil to India on commercial considerations. “Some more quantities may be bought over the next 2-3 months,” he said.
Mehta said China has imported 100 million tonnes (mt) of soyabeans, resulting in surplus soyabean oil and soyameal. This has forced Beijing, a traditional importer of soyabean and palm oils, to export.
May not last
Sudhakar Desai, President of Indian Vegetable Oil Producers’ Association (IVPA), said the trend of importing soyabean oil from China is unlikely to continue.
Data show that India imports between 4.1 mt (2021-22) and 3.44 mt (2023-24) of soyabean oil every oil year. It also imports 7-9 mt of palm oil annually.
India buys 65 per cent of its soyabean oil from Argentina, 7-8 lakh tonnes from Brazil, and the rest comes from sources such as Russia, Ukraine, Turkey, Iran and Egypt, Sandeep Bajoria, former SEA president and CEO of Sunvin group, told a television channel.
Desai said there are many origins that export edible oils to India and the volume from such places is miniscule. “Earlier, some soyabean oil was diverted from Nepal also,” he said.
Imports from elsewhere
“Sellers have to be competitive if buyers have to move away from their traditional sources. This is smart purchase. It helps India to diversify its import basket,” said Bajoria.
Mehta said if China has surplus and gets better prices, it is free to export. However, Beijing is not a major supplier to India.
Mehta recalled that while China imported oilmeal from India on the one hand, it exported oilmeal to Korea on the other. “India has imported soyabean oil from Vietnam and other countries where soyabeans are not grown. If a country has a surplus, it will export,” the SEA executive director said.
Oilseeds lower than MSP
IVPA’s Desai said China’s soyabean crushing is huge — it imports soyabeans and exports surplus oil to other countries. “China could be substituting other oils like canola or palm, and shipping out some soya oil to India,” he said.
The IVPA president said “strong” imports of palm and soya oil will fully meet the upcoming festival demand, despite mustard prices ruling higher at ₹7,4750 a quintal.
The soyabean oil imports from China to India come at a time when prices of oilseeds are ruling lower than the minimum support price (MSP), barring mustard and sesame. Data from SEA show that groundnut prices are ruling at ₹5,400 a quintal against the MSP of ₹6,783, while soybean is ruling at ₹4,600 against the MSP of ₹4,892 and sunflower at ₹6,600 ( ₹7,280 MSP).
Published on July 30, 2025
