This was followed by Malaysia at 2.97 mt and Indonesia at 2.90 mt during the period | Photo Credit: DULEZIDAR
Same data points were also visible in the Solvent Extractors’ Association of India’s (SEA) data release for October. It had shown that India imported 3.42 million tonnes (mt) of edible oils from Argentina during November 2025 to September 2026. This was followed by Malaysia at 2.97 mt and Indonesia at 2.90 mt during the period.
When it comes to oils, USDA’s November report puts total palm oil imports at 8.4 mt, soybean oil at 5 mt and sunflower oil at 3.85 mt.
Why Argentina tops
USDA said Argentina became India’s largest vegetable oil supplier this year fuelled by demand for soybean oil. It said recent cuts to export taxes increased the competitiveness of Argentine soybean oil.
Sudhakar Desai, President of Indian Vegetable Oil Producers’ Association (IVPA), told businessline that Argentina’s position as a major supplier is durable. Its number one ranking is more likely to move from year to year. Argentina has a large, export-oriented crushing industry and can supply India with both soybean and sunflower oil.
In 2025-26, strong Indian soybean oil demand, lower Argentine export taxes and an opening in sunflower oil as Black Sea shipments eased all worked in its favour. Those conditions can change. The structural shift is that Argentina now matters to Indian buyers across two oils, giving it more than one route to retain a large share of the Indian market, he said.
BV Mehta, Executive Director of SEA, said Brazil, Argentina and the US are the major producers of soybean. The US and Brazil export soybean, as they don’t have much facility to crush and produce oil. Argentina, which has a big crushing facility, is a major producer of soybean oil.
He said the availability is the major factor for Argentine oils becoming increasingly competitive in the Indian market.
However, DN Pathak, Executive Director of the Soybean Processors Association of India (SOPA), said he did not see any story in Argentina’s share increasing significantly. It has always had a higher share of Indian soy oil imports, he said.
China factor
USDA report said new suppliers, including China and Nepal, have emerged now. Due to record crush, China is now the largest soybean oil exporter in the world outside of South America and an increasingly important supplier to India. Nepal has also boosted its market share in India, capitalising on duty-free refined oil access under the South Asian Free Trade Agreement. Much of the soybean oil imported from Nepal is Argentine soybean oil refined in Nepal and subsequently exported under preferential tariff treatment, it said.
Terming China as a different story, Pathak said it is a recent but purely temporary development. China is a net importer of edible oils as well as oilseeds, he said.
Sudhakar Desai said Chinese soybean oil can be very competitive for particular shipment windows. Record crushing created an exportable surplus, and Chinese sellers have offered discounts when they needed to move stocks. A shorter voyage can also make a Chinese cargo attractive when an Indian refiner needs prompt delivery. The comparison is the landed cost at the Indian port for the same specification and delivery window. Freight, timing and the price offered all matter, he said.
“Argentina and Brazil still have the advantage of export scale and regular availability. China’s ability to compete over a full season depends on its soybean imports, crush rates, domestic demand and how much surplus is available for export. For India, China is a credible additional supplier and can win business whenever those economics line up,” he said.
Sunflower oil gains
USDA report said India modestly increased sunflower oil imports in 2025-26. This is due to Argentina more than making up for reductions in imports from Ukraine and Russia. In 2025-26, Ukraine had a smaller sunflower seed crop, while shipments from Russia have slowed in recent months. Since July 2026, Argentina has been the dominant sunflower seed oil supplier to India. Competitive Argentine prices have led India to double sunflower seed oil purchases compared to the previous marketing year, it said.
IVPA’s Desai said the Government’s September 24 decision to cut the basic customs duty on crude sunflower oil to zero per cent from five per cent gave sunflower oil a further advantage against competing oils. The cut applied across origins and came after Argentina had already gained ground. The earlier gains were driven by competitive offers and available cargoes, he said.
Jakarta trade dipping
Mentioning that Indonesia has been the historic pre-eminent vegetable oil supplier to India due to its dominance in the global palm oil trade, the USDA report said Indonesia’s trade with India has been declining since 2022-23 due to the rapid implementation of its increasingly large biodiesel blending mandates, which has resulted in a larger palm oil domestic consumption.
In 2025-26, Malaysia and Thailand have increased shipments of palm oil to India, both aided by stronger production than the year prior and price competitiveness against Indonesian origin, it said.
SEA’s Mehta said both Malaysia and Indonesia are supplying palm oil to India. Thailand, which exported small quantity, is unlikely to export larger quantities. Interestingly India also imported palm oil from Colombia. Colombia has started to produce around 1.8-2 mt of palm oil.
Sudhakar Desai said Malaysia can take a meaningful share, and Thailand can supply useful additional cargoes when its crop and domestic demand allow. However, the scale is very different. Indonesia’s biodiesel programme keeps more palm oil at home, but its export scale means it will remain a core supplier to India, he said.
Published on November 11, 2026
