Soybean oil and fractions market in India

Earlier Report Observations

The soybean oil market in India grew steadily from 4.5 million tonnes in 2018 to 5.7 million tonnes in 2020. This expansion was supported by rising imports, which reached 3.7 million tonnes in 2020. In that year, excessive rainfall and pest attacks damaged soybean crops in key production states like Madhya Pradesh and Maharashtra, reducing domestic crush volumes and contributing to greater reliance on imported oil to meet consumption.

Market volume fluctuated between 2021 and 2023, dipping to 5.6 million tonnes in 2021 before peaking at 6.3 million tonnes in 2022 and falling back to 5.6 million tonnes in 2023. Soybean prices peaked globally in the 2021-22 and 2022-23 periods, encouraging higher domestic production in 2022. By the 2023-24 season, however, soybean prices fell sharply as oversupply emerged, with farmers selling below the Minimum Support Price. This price decline coincided with reduced domestic production and lower import volumes in 2023.

In 2024, soybean oil imports surged to a five-year high, driven by elevated palm oil prices and shifts in global supply from Argentina and Brazil. The government raised import duties on crude and refined edible oils in September 2024 and approved the National Mission on Edible Oils – Oilseeds with a substantial outlay to increase domestic oilseed production and improve extraction efficiency over the coming years.

Production soybean oil and fractions in India

In kind, 2017-2020, K t

India was one of the world's top producers of soybean oil and fractions from 2017 to 2020, ranking fifth globally by production volume during this period.

Top producers of soybean oil and fractions, 2017-2020

World map of production of soybean oil and fractions, 2017-2020

In 2020, India produced 2 020 K t of soybean oil and fractions, marking an 11.8% decrease compared to the previous year. Over the period from 2017 to 2020, production declined by 3%, which translates to an average annual decrease of 1.0%. The lowest production level was recorded in 2018 at 1 518 K t, while the peak occurred in 2019 with 2 290 K t. The most significant drop in production was observed in 2018, falling by 27.1%, whereas the largest increase took place in 2019, rising by 50.9%.

Annual dynamics of production in India in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the output of soybean oil and fractions in India was valued at 2 537 M $ US, reflecting an 11.5% decline from 2019. The lowest value was recorded in 2018 at 1 886 M $ US, and the highest was in 2019 at 2 866 M $ US. The most substantial decrease occurred in 2018, dropping by 26.9%, while the largest increase was in 2019, surging by 51.9%.

Annual dynamics of production in India in value, 2017-2020, M $ US

Exports soybean oil and fractions from India

Exports in kind, K t

India's exports of soybean oil and fractions grew for the third year in a row in 2020, reaching 14 K t, which represents a sharp increase of 44.5% compared to 2019. From 2017 to 2020, exports soared by 567.2%, averaging an annual growth rate of 88.3%.

Annual dynamics of product's exports from India in kind, 2017-2020, K t

From 2017 to 2020, Bhutan and Canada were the primary destinations for India's soybean oil and fractions exports in volume terms, together accounting for 82.8% of total exports, with other partners making up the remainder.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from India in kind, 2017-2020

Exports in value, M $ US

India's export value of soybean oil and fractions rose for the third consecutive year in 2020, totaling 17 M $ US, a 45.0% increase over the previous year. Between 2017 and 2020, export value jumped by 576.4%, with an average annual growth rate of 89.1%.

Annual dynamics of product's exports from India in value, 2017-2020, M $ US

During 2017–2020, Bhutan was the leading market for India's soybean oil and fractions exports in value terms, holding a 71.5% share of total exports, while the rest was distributed among various other destinations.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from India in value, 2017-2020

Imports soybean oil and fractions to India

Imports in kind, K t

India's imports of soybean oil and fractions increased for the second consecutive year in 2020, reaching 3 739 K t, a strong advance of 17.4% compared to 2019. Over the 2017–2020 period, imports grew by 12%, averaging an annual increase of 3.8%. The lowest import volume was recorded in 2018 at 2 971 K t, with the largest decline occurring that same year, falling by 11.0%.

Annual dynamics of product's imports to India in kind, 2017-2020, K t

From 2017 to 2020, Argentina was the dominant supplier of soybean oil and fractions to India in volume terms, accounting for 73.4% of total imports, with other countries sharing the remaining volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to India in kind, 2017-2020

Imports in value, M $ US

After a two-year decline, India's imports of soybean oil and fractions rebounded in 2020, reaching 2 986 M $ US, up by 31.7% compared to 2019. Between 2017 and 2020, import value increased by 8.6%, with an average annual growth rate of 2.8%. The lowest value was recorded in 2019 at 2 267 M $ US, and the largest decline occurred in 2018, dropping by 17.1%.

Annual dynamics of product's imports to India in value, 2017-2020, M $ US

Over the 2017–2020 period, India's imports of soybean oil and fractions in value terms were heavily concentrated on Argentina, which accounted for 72.8% of total imports, with other countries collectively making up the remaining share.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to India in value, 2017-2020