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A major recalibration is unfolding in the global edible oil trade as India dramatically scales up its crude soybean oil purchases from China. Traditionally known as the world’s leading importer of raw soybeans, China has rapidly transitioned into a key exporter of processed soybean oil to clear out an unprecedented domestic surplus. This emerging trade corridor is reshuffling market shares among India's traditional suppliers.
Historical data shows that India has consistently relied on South American giants, namely Argentina and Brazil, to fulfill the vast majority of its soybean oil requirements. Between November 2025 and March 2026, these two nations, alongside China, commanded a staggering 93.3% share of India's total crude soybean oil imports. However, the internal dynamics among these suppliers are shifting significantly. Argentina successfully expanded its dominance, capturing 63.4% of the Indian market in the 2025-26 season compared to 60.2% during the previous 2024-25 period. Conversely, Brazil’s market share experienced a noticeable contraction, sliding from 23.8% down to 21.8%.
Stepping directly into this gap is China, which managed to capture an 8.1% share of India's imports during the same timeframe. This marks a stark departure from the preceding four years, during which India recorded absolutely zero soybean oil imports from its northern neighbor. With this rapid escalation, China has effectively outpaced traditional secondary suppliers like Russia, Thailand, and the United States to secure its position as India's third-largest source of soybean oil.
The commercial driving forces behind this trade pivot are dual-fold: a massive domestic supply glut within China and unmatched logistical efficiency. China crushes massive volumes of imported soybeans—averaging between 90 million and 100 million tonnes annually. Recently, a combination of robust raw soybean arrivals from South America and a cooling domestic Chinese economy has left local processors holding exceptionally high inventories of processed cooking oil. To alleviate this pressure, Chinese crushers began aggressively pricing their soybean oil at a noticeable discount of $10 to $15 per tonne compared to South American offers.
Logistically, the advantages for Indian buyers are profound. While a cargo of vegetable oil shipping from Argentina or Brazil requires approximately 50 to 60 days to reach Indian shores, a vessel departing from China can dock at India's eastern ports in just 10 to 12 days. This rapid transit time drastically reduces inventory carrying costs and allows Indian refiners to respond swiftly to sudden domestic demand spikes.
Concurrently, India is also seeing an influx of refined soybean oil from Nepal, fueled by customs duty exemptions granted under the South Asian Free Trade Area (SAFTA) agreement. As domestic edible oil stocks in India reached a multi-month low towards the end of 2025, the highly competitive and rapid arrivals of Chinese oil have provided a critical supply buffer for Indian markets.
Source: Moneycontrol
