The agreement will increase soybean oil shipments from China to India while opening the Chinese market to more Indian mustard and soybean meal exports.
INDIA/CHINA – India and China have signed a new edible oil trade agreement that will expand soybean oil trade between the two countries and deepen agricultural ties at a time when India continues to rely heavily on imported edible oils.
The Indian Vegetable Oil Producers’ Association (IVPA) and the China Chamber of Commerce of Foodstuffs and Native Produce (CFNA) signed the agreement on July 1, 2026, during the CCOC 17 Conference in Shanghai.
Under the agreement, India will increase soybean oil imports from China while exporting more mustard meal and soybean meal to the Chinese market. The two industry bodies also agreed to maintain regular dialogue, strengthen links between buyers and sellers, and work together on processing technology and sustainability.
The deal makes China one of India’s leading soybean oil suppliers alongside Brazil and Argentina. It also comes as India’s edible oil market continues to change because of shifting supply conditions and demand.
India imports about 60 percent of its edible oil requirements, bringing in between 15 million and 17 million tonnes each year. During the 2025 to 2026 oil year, imports are expected to reach about 16.5 million tonnes, while domestic production is forecast at 9.6 million tonnes.
Soybean oil imports are expected to total between 5 million and 5.5 million tonnes, compared with 8 million to 8.5 million tonnes of palm oil. Industry observers say refiners have started increasing soybean oil purchases as palm oil supplies remain tight and the price gap between the two oils continues to narrow.
The agreement is expected to help India spread its sources of soybean oil while giving Indian oilseed processors better access to the Chinese market for protein-rich feed ingredients.
The deal could also influence the wider vegetable oil market. India and China are the world’s two largest vegetable oil consumers, and stronger trade between them could affect global demand and trade flows in the coming years.
The agreement follows other recent efforts by India to strengthen its edible oil supply chain and improve trade links with major producing countries. Industry groups also expect closer cooperation between Indian and Chinese companies to support improvements in oil processing and encourage more exchanges between businesses from both countries.
Market participants will now watch how quickly trade volumes grow under the agreement and whether the wider partnership leads to more opportunities for both exporters and processors.
Source: https://millingmea.com