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The Solvent Extractors’ Association of India (SEA) has formalized a statement of interest with the government of Mozambique's Nampula province to investigate the development of a sustainable oilseed and vegetable oil corridor. This partnership aims to bridge the growing gap between India's domestic production and its rising edible oil consumption.
The agreement was signed during the Globoil India conference in Mumbai by Nampula Governor Eduardo Mariamo Abdul and SEA President Angshu Mallick. Over a three-year exploratory period, the initiative will analyze the feasibility of sourcing oilseeds directly from Nampula and strengthening bilateral trade frameworks for vegetable oils.
India currently holds the position of the world's largest vegetable oil importer. During the 2024-25 oil year, the country imported more than 16 million tonnes, accounting for approximately 60 per cent of its domestic requirements. With national demand projected to surge to 46.5 million tonnes by 2047, the SEA noted that domestic output alone is unlikely to satisfy long-term requirements, necessitating new international partnerships.
At present, India’s edible oil security relies heavily on a small group of nations, including Indonesia, Malaysia, Argentina, Brazil, Russia, and Ukraine. The SEA highlighted Africa as a critical but underutilized source for diversification. Currently, oilseed trade with Mozambique is valued at roughly USD 20 million annually, primarily consisting of soybeans, suggesting significant room for expansion.
Nampula is positioned as a strategic hub due to its robust production of groundnut, soybean, sesame, and oil palm. Furthermore, its location along the Nacala Development Corridor provides essential rail and road connectivity to the deepwater Port of Nacala. This infrastructure offers a shorter maritime route to India’s west coast compared to traditional shipments from South America, potentially enhancing price competitiveness and mitigating logistics risks.
The proposed corridor seeks to replicate the successful structured trade model already established between the two nations for pulses. While the current agreement is exploratory and does not yet involve formal investment commitments, it sets the stage for future commercial arrangements under Mozambican law, allowing SEA member companies to independently evaluate subsequent opportunities in the region.
Source: AgroSpectrum India