Argentine agribusiness urges Mercosur-India free trade deal to expand vegetable oil sales

Oilseed industry seeks deeper access to India

Argentina’s agribusiness sector is pressing for a free trade agreement between Mercosur and India, seeking to consolidate one of the country’s most important markets for vegetable oils. Gustavo Idígoras, president of the Argentine Oil Industry Chamber and Grain Exporters Center, known as CIARA-CEC, said a long-term strategic relationship should be supported by an agreement similar to the one recently reached between Mercosur and the European Union.

The request follows strong growth in bilateral trade. According to News Digitales, citing Argentina’s INDEC statistics agency, Argentine agricultural shipments to India reached USD 3.7 billion in 2025, led by soybean oil. Idígoras said Argentina’s exports to the country increased by 37% during the year and that its bilateral trade surplus exceeded USD 4 billion.

Argentina mainly supplies India with vegetable oils and other primary products. India’s sales in the opposite direction include medicines, chemicals, machinery and automotive parts. The existing Mercosur-India Preferential Trade Agreement has been in force since 2009, but the Argentine industry wants negotiations to advance toward broader free trade.

Soybean oil anchors the commercial relationship

More than 80% of Argentina’s sales to India consist of vegetable oils, principally soybean and sunflower oil. Estimates from the Rosario Board of Trade show that India absorbed about 48% of Argentina’s soybean oil exports and 30% of its sunflower oil exports between 2018 and 2023.

That concentration makes Indian demand particularly important for Argentine crushers, exporters and oilseed producers. It also gives tariff conditions and market-access rules direct significance for processing margins and export volumes. In 2025, Argentina was India’s largest supplier of vegetable oils, according to Idígoras.

The industry’s proposal was highlighted as a delegation from the Confederation of Indian Industry visited the Buenos Aires Grain Exchange. The group included 23 business executives accompanying India’s commerce secretary, Shri Rajesh Agrawal. The visit provided a forum for discussing closer commercial ties as Argentina seeks to protect and expand its position in the Indian edible-oil market.

Sunflower oil gains strategic relevance

CIARA-CEC sees particular potential to increase sunflower oil sales. Russia and Ukraine are both major suppliers, and their continuing conflict has created obstacles for trade. Idígoras presented Argentina’s peaceful status and reliability as a supplier as competitive advantages in this environment.

The opportunity nevertheless extends beyond agricultural oils. Argentina and India have developed government agendas covering lithium, copper, liquefied natural gas, mining, energy, pharmaceuticals and agriculture. A broader Mercosur-India agreement could therefore affect several industries, although vegetable oil would remain the immediate commercial priority because of its existing scale.

For Argentina, the central issue is whether stronger institutional access can turn an already large trade flow into sustained growth. For India, deeper ties could widen its supplier base for edible oils at a time when Black Sea supply carries geopolitical risk. Any negotiation would need to balance those interests across Mercosur, but the current trade figures give Argentina’s oilseed sector a concrete case for placing India near the top of the bloc’s external agenda.