Big Indian firms made a deal to import soy oil from China
MNC’s like Archer Daniel Midland, Bunge, Louis Dreyfous Company, Cargill and firms based out of India like Patanjali Foods (Ruchi soya) has made a deal to import 1.5 lakh tonnes of soft oil between September and December from two Chinese firms because of the competitive prices offered by them.
Cosco is the company which is owned by private and govt. company of China and is going to ship edible oil to India. Few other Indian firms like Emami Agrotech , GEF (Gemini Edibles and Fats) are also importing soy oil from China.
Brazil is the largest producer of soybean but in spite of that firms are moving towards Chinese firms because they are offering it at $15-20 lower prices than Brazil firms also the shipment time from China is less as compare to Latin America which takes almost 45 days.
Why China offering soy oil at lower prices?
China imported soybean in bulk quantity almost 100 million tonnes due to which they have soybean oil and meal in bulk which they are offering at a comparatively cheaper prices but according to president of IVPA (Indian Vegetable Processing Association) the trend is unlikely to continue.
India has also imported from other countries as well like Veitnam which are not major producers of soybean but they have surplus so they export. It helps India to diversify their import basket.
Price trends
Prices of soybean is hovering around ₹4500 a quintal while its MSP is ₹4892 while talking about other oilseeds like groundnut market prices are ruling at ₹5400 a quintal but MSP is ₹6783/ quintal.
