Soybean oil
India has made the biggest purchase of soybean oil from Argentina so far. About 3 lakh tonnes of soybean oil was purchased in just two days (Tuesday and Wednesday). The deal was possible because Argentina recently removed the export duty on soybean and other food products.
Soybean oil instead of Palm Oil
Experts say that Indian traders have done this deal for delivery between October to March. The quantity purchased is abnormally large and shows that the removal of duty has a direct impact on India’s purchase. The price of soybean oil was in the deal to $ 1,100 to $ 1,120 per tonne (including cost, insurance and freight). Dealers reported that prices decreased by about $ 50 per ton, causing soybean oil to become cheaper than palm oil. This was the reason that this time Indian buyers gave priority to soybean oil instead of palm oil.
Relief to Argentina
Argentina has taken this step to promote foreign sales and increase US dollars. The country’s currency peso is constantly weakening and the government is in dire need of foreign exchange reserves. This major purchase of India will help reduce Argentine’s soybean oil stock rapidly.
India’s import status
India is the world’s largest edible oil importer country. In general, India buys millions of tons of soybean oil every month. But in August 2025, this import declined by 25.27% to only 3.67 lakh tonnes, which was the lowest level in four months.
India Palm Oil mainly brings from Indonesia and Malaysia, while soybean and sunflower oils are purchased from Argentina, Brazil, Russia and Ukraine. India’s total vegetable oil imports rose 4.7% to 16.2 lakh tonnes in August, the highest level after July 2024.
Demand will increase in festivals
In India, consumption of fried things and sweets increases during the festivals and weddings season. Due to this, the demand for edible oil also goes up quite up. At such a time, this record deal made from Argentina will prove to be helpful in ensuring oil supply for India.