Strong soybean imports from South America and the United States, combined with softer domestic consumption, created surplus refining capacity. Lower restaurant activity and moderated economic growth reduced internal demand, leaving processors with excess soybean oil that exceeded local absorption capacity. Commercial inventories surpassed 1 million tonnes by mid-November, the highest level in seven years.
India, the world's largest soybean oil consumer, has emerged as the main destination for these shipments. Chinese soybean oil, processed from imported beans of predominantly South American origin, offers competitive pricing of $10–15 per tonne below alternative sources. Transit time to India's east coast ports is approximately 10–12 days, significantly shorter than the 50–60 days required from Brazil or Argentina.
Ashish Acharya, vice president of Patanjali Foods Ltd, commented that Chinese soybean oil provides equivalent quality at a lower cost and with faster delivery.
Approximately 70,000 tonnes arrived in India during November, with an additional 12,000 tonnes expected soon. Continued high operating rates at Chinese crushing plants and limited near-term recovery in domestic consumption indicate sustained export volumes in the coming months.
China's annual soybean oil production stands at around 20 million tonnes, historically consumed almost entirely within the country. The current shift marks a notable increase in overseas sales, positioning China as an important supplementary supplier to the Indian market while helping balance domestic inventory levels. Trade flows in this segment are supported by stable bilateral commercial relations and efficient maritime logistics.
