The Indian Vegetable oil Producers’ Association (IVPA) has signed a memorandum of understanding (MoU) with the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal Byproducts (CFNA) to strengthen bilateral edible oil trade, according to a media statement from IVPA. The MoU was signed at the CCOC 17 Conference in Shanghai on July 1, 2025.
MoU Objectives and Strategic Significance
The MoU reflects a shared commitment to fostering stronger industry linkages, promoting mutual growth, and building a more resilient and future-ready global vegetable oils and oilseed sector, the statement said. The cooperation establishes a strategic platform for sustained dialogue, buyer-seller connect, and collaborative initiatives that advance innovation, sustainability, and potential trade development.
Quoting Sudhakar Desai, President of IVPA, the statement said: “This marks a significant milestone in strengthening bilateral industry cooperation. As the world’s two largest consumers of vegetable oils, India and China play a definitive role in shaping global demand, trade dynamics, and the future of the sector.”
Trade Dynamics and Import Projections
The MoU comes at a time when China, after Argentina and Brazil, has emerged as the biggest supplier of crude soybean oil to India, according to Desai. The share of soybean oil imports to India is steadily rising and is expected at approximately 5 million tonnes (mt) as against 8-8.5 mt of palm in the oil year 2025-26.
Desai said that the collaboration will not only give a fillip to soybean oil imports from China but also enhance edible oil derivatives exports from India, primarily mustard and soybean meals, through strengthened market linkages.
| Oil Type | Projected Imports (2025-26) |
|---|---|
| Soybean oil | ~5 million tonnes |
| Palm oil | 8–8.5 million tonnes |
India’s Edible Oil Import Dependence
India imports 60% of its edible oil needs, with imports remaining in the range of 15-17 mt. For the oil year 2025-26, imports are projected at 16.5 mt, while domestic production is estimated at 9.6 mt, Desai added. Supply challenge and narrowing price premium in palm oil is prompting refiners to gradually shift to soybean oil, he noted.
Path Forward
Desai concluded: “We look forward to transforming this industry connect into meaningful action and long-term value for the industry.” The MoU is expected to facilitate buyer-seller connections and collaborative initiatives that advance innovation and sustainability in the vegetable oils sector.
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