India is increasingly turning to sunflower and soybean oil imports from Argentina to reduce its reliance on palm oil, a move aimed at diversifying edible oil sources and strengthening food security.
Earlier this week, Indian importers secured around 300,000 metric tons of soybean oil from Argentina, following Buenos Aires’ decision to scrap export taxes on soybeans and other food products, making its oils more competitive in global markets.
Between January and July 2025, Argentina exported 2.1 million tons of soybean oil and 420,000 tons of sunflower oil to India—the highest export volumes in more than a decade. These figures underscore Argentina’s growing role as a reliable supplier amid ongoing supply chain disruptions.
“With India’s edible oil demand rising steadily, we see strong potential for long-term cooperation,” said Bruno Ferrari, Economist at the Economic Studies Department of the Rosario Board of Trade. “Argentina is ready to be a reliable and consistent supplier for India’s future consumption trends.”
India’s shift comes as it seeks to reduce dependence on palm oil, traditionally imported from Southeast Asia, due to environmental concerns, price fluctuations, and supply risks. Soybean and sunflower oils are considered healthier and more versatile options for Indian households and industries.
The Russia-Ukraine conflict has disrupted global sunflower oil supplies, once dominated by the two countries. In response, India has accelerated efforts to deepen edible oil trade with Latin American partners. Talks are underway to amend the Preferential Trade Agreement (PTA) with MERCOSUR nations—Argentina, Brazil, Paraguay, and Uruguay—to facilitate long-term crude sunflower oil contracts.
“Argentina remains distant from global conflicts and has proven itself with stable exports and robust productive capacity,” noted Agustín Larralde, Director of Market Planning & Analysis at Argentina’s Ministry of Agriculture.
In the 2023–24 season, Argentina’s soybean oil production hit 8.7 million tons, its highest in ten years, supported by favorable growing conditions and advanced agricultural practices.
This year, delegations from both countries exchanged visits to explore agricultural cooperation. In July, officials from India’s Ministry of Agriculture and Farmers Welfare visited Argentina, followed by an Argentine delegation to Delhi in August for talks with India’s agriculture and food ministries.
“The vegetable oil sector is just one pillar of our partnership,” said Ambassador Mariano Caucino of Argentina. “The broader bilateral relationship is flourishing, based on shared values of sustainable development and mutual growth.”
India’s rising population, growing middle class, and shifting dietary preferences are fueling demand for edible oils. Soybean and sunflower oils are especially attractive due to their health benefits and cooking versatility. Under its Atmanirbhar Bharat (Self-Reliant India) initiative, the government is working to stabilize domestic supplies while ensuring reliable international sourcing.
As India seeks secure edible oil supplies in a fragmented global market, Argentina’s role is set to grow further. With stable governance, efficient logistics, and expanding oilseed production, Argentina offers both reliability and scale for India’s long-term food security.
