Argentina and Malaysia overtake Indonesia as leading vegetable oil suppliers to India

Argentina and Malaysia overtook Indonesia in vegetable oil exports to India in the MY 2025/26, reshaping traditional supply patterns in one of the world’s largest markets. According to USDA’s November report, Oilseeds: World Markets and Trade, Argentina became the largest supplier, supported by stronger demand for soybean oil and reductions in export taxes that improved the competitiveness of its products. Meanwhile, Indonesia, which had previously dominated the Indian market through palm oil exports, fell to third place.

According to the Solvent Extractors’ Association of India (SEA), India imported 3.42 mln tons of vegetable oils from Argentina between November 2025 and September 2026. Malaysia supplied 2.97 mln tons, while Indonesia shipped 2.9 mln tons. India’s total palm oil imports in 2025/26 reached 8.4 mln tons, compared with 5 mln tons of soybean oil and 3.85 mln tons of sunflower oil. Argentina strengthened its position in the Indian market by supplying two major types of oil — soybean and sunflower oil.

A key factor behind Argentina’s export growth was the decline in sunflower oil shipments from the Black Sea region. Due to a smaller sunflower seed crop in Ukraine in 2025/26 and slower shipments from Russia, India increased purchases of Argentine products. Since July 2026, Argentina has become the leading sunflower oil supplier to the Indian market. Additional support for imports came from India’s decision to reduce the basic import duty on crude sunflower oil from 5% to 0%, effective September 24, although Argentina had already gained market share before the measure was introduced.

Meanwhile, the decline in Indonesian exports is linked to rising domestic palm oil consumption for biodiesel production. According to USDA, Indonesian shipments to India have gradually decreased since 2022/23 as the country expanded its mandatory biofuel blending program. Against this backdrop, Malaysia and Thailand increased palm oil exports to India, supported by higher domestic production and more competitive offers. Nevertheless, Indonesia remains one of India’s key suppliers due to the scale of its palm oil production and exports.

In addition to traditional exporters, China and Nepal are strengthening their positions in India’s vegetable oil market. Record soybean crushing volumes have enabled China to become the largest soybean oil exporter outside South America and increase shipments to India. Nepal, meanwhile, is expanding exports of refined soybean oil by taking advantage of duty-free access under the South Asian Free Trade Agreement. A significant share of these products is made from Argentine soybean oil imported for further processing. The growing number of suppliers is intensifying competition in the Indian market and reshaping traditional vegetable oil trade flows.

Tags: vegetable oils, Indonesia, India, Malaysia, edible oils, Argentina