India, China ink edible oil trade pact to boost soybean oil imports

Kolkata: The Indian Vegetable oil Producers’ Association (IVPA), the apex body representing India’s edible oil refining industry, has signed a Memorandum of Understanding (MoU) with China Chamber of Commerce of Foodstuffs and Native Produce (CFNA) at the CCOC 17 Conference in Shanghai on July 1, 2026 with an objective to foster strong industry linkages between the two countries. The collaboration will not only give a fillip to soybean oil imports from China but also enhance edible oil derivatives exports from India, primarily mustard and soyabean meals, through strengthened market linkages.

This cooperation establishes a strategic platform for sustained dialogue, buyer–seller connect, and collaborative initiatives that advance innovation, sustainability, and potential trade development.

Sudhakar Desai, President, IVPA said, " As the world’s two largest consumers of vegetable oils, India and China play a definitive role in shaping global demand, trade dynamics, and the future of the sector.”


The MOU comes at a time when China, after Argentina and Brazil, has emerged as the biggest supplier of crude soybean oil to India. In fact, the share of soyabean oil imports to India is steadily rising and is expected at approx. 5-5 million tonnes as against 8-8.5 million tonnes of palm in 2025-26 oil year.

India imports 60% of its edible oil needs with imports remaining in the range of 15 to 17 million metric tonnes. For the 2025-26 oil year, imports are projected at 16.5 million tonnes, while domestic production is estimated at 9.6 million tonnes. Supply challenge and narrowing price premium in palm oil is prompting refiners to gradually shift to soybean oil.