India cancels more soyabean oil shipments as premium to rivals widens
11/03/2026 (Oils & Fats International) - India, the world’s top edible oil importer, has cancelled more soyabean oil cargoes due to the sharp increase in prices for the oilseed compared with alternatives, according to a Financial Post report citing a Bloomberg article.
At the time of the 4 March report, cancelled orders included shipments of around 25,000 tonnes from Russia and 6,000-8,000 tonnes from South America, according to Aashish Acharya, vice president at Patanjali Foods, one of India’s top buyers.
The Russian cargoes had been scheduled to arrive in India by late March or early April, while the South American shipments had been due in the April to July period, Acharya was quoted as saying.
In the week before the report, India had also cancelled about 70,000 tonnes of South American soyabean oil and had backed out of at least 35,000 tonnes in January as the rupee’s slump had increased the cost of imports, the Financial Post wrote.
In addition, buyers had cancelled or delayed more than 100,000 tonnes of Argentinian shipments in December.
Soyabean oil has been trading at a premium to palm oil since 2023, according to the report.
“Palm oil is a cheaper option for buyers looking for replacements,” Acharya said.
“We can see more Indian purchases of palm oil … as nearby shipments of palm oil are available at around US$60-US$70 cheaper compared to soyabean oil.”
The market had also been impacted after US attacks on Iran disrupted energy supplies from the Middle East, lifting prices as biodiesel demand increased, the report said.