NEW DELHI, INDIA – India’s soybean oil demand is expanding, but much of the additional import business is expected to favor South American suppliers rather than the United States, according to USDA Foreign Agricultural Service staff in New Delhi.
India’s 2026/27 soybean oil consumption is forecast near 7.5 million metric tons, while domestic production is projected at only about 1.6 million. Imports are expected to reach 5.6 million metric tons.
Brazil and Argentina are expected to dominate those imports because discounted supplies remain competitive in India’s edible-oil market. Consumers and processors are also shifting toward soybean oil as palm oil prices remain volatile.
U.S. soybean oil shipments have declined as higher freight costs and stronger domestic biofuel demand reduce competitiveness. India has even increased purchases from China, including a record 140,000 metric tons of soybean oil.
India’s growing dependence on imported edible oils keeps the market important, but current price and freight relationships favor competing suppliers.
Farm-Level Takeaway: India’s growing soybean oil demand offers export potential, but U.S. suppliers currently face stronger competition from South America.