India Cancels Soybean Oil Orders, Including Those from Russia
2026/03/19
According to Bloomberg, India has begun canceling soybean oil import orders due to a sharp rise in soybean oil prices compared with alternative oils. 。
Patanjali Foods Limited, one of India’s largest vegetable oil purchasers ( Ashish Acharya, Vice President of Patanjali Foods Ltd., stated that recently about 25,000 tonnes of soybean oil from Russia and 6,000 to 8,000 tonnes of soybean oil from South America have had their orders canceled.
Last week, the country also canceled approximately 70,000 tonnes of soybean oil orders from South America; in January of this year, it similarly canceled at least 35,000 tonnes of soybean oil orders due to the depreciation of the Indonesian rupiah, which drove up import costs. In December last year, buyers canceled or postponed shipments of more than 100,000 tonnes of Argentine soybean oil.
The underlying reason is the steadily widening premium of soybean oil over palm oil. Since 2023, soybean oil has consistently traded at its highest premium relative to palm oil—the closest substitute in both food and fuel production. Recent developments this week have also weighed on the market: U.S. strikes against Iran have disrupted energy supplies in the Middle East, driving up oil prices amid rising demand for biodiesel.
Russian cargo is expected to arrive on Arrivals in India are scheduled for late March or early April, while shipments from South America are planned for delivery between April and July.
For buyers seeking alternatives, palm oil is a more cost-effective option, and its short-term supply prices are lower than those of soybean oil. At $60 to $70 per ton, India may soon increase its palm oil purchases.
As previously reported, India’s sunflower oil imports halved in February due to rising prices.
According to According to OleoScope data, as of March 5, 2026, the March-delivery soybean oil price on the U.S. CBOT stood at USD 1,440.06 per tonne, up USD 49.16 per tonne from the previous settlement; the March-delivery palm oil price on the Malaysian FOB basis was USD 1,089.53 per tonne.
