Sandeep Bajoria, Chief Executive Officer of Sunvin Group (a vegetable oil brokerage and advisory firm), said business line that India has canceled about 45,000 tonnes of soybean oil deals for February, March and April deliveries. Indian buyers canceled about 85,000 tonnes of South American oil in December.
The depreciation of the rupee and the price difference between South American and Indian soya oil are cited as reasons for this. South American soybean oil is about $35 per tonne more expensive compared to its domestic counterpart, he said.
Higher than CPO
The CIF price of degummed soybean oil was $1,248 per tonne on January 22. According to the Solvent Extractors’ Association of India (SEA), the average CIF value of crude soybean oil was $1,188 per tonne in December. In fact, the price of soybean oil in India was about $121 per tonne higher than that of crude palm oil (CPO) on January 22.
The exchange rate of the rupee stood at ₹91.63 against the dollar on January 22. The average exchange rate of the rupee was ₹90.03 per dollar in December 2025, while in November 2025 it was ₹88.84. The average exchange rate of the rupee was ₹84.97 per dollar in December 2024.
On the other hand, soybean oil has been on the rise since December as the US Environmental Protection Agency has proposed a higher renewable fuel standard for 2026 and 2027, increasing demand for biomass-based diesel.
December boost
China’s purchase of U.S. soybeans to fulfill its promise to buy 12 million tons by the end of February has also pushed prices higher. Moreover, India’s soybean oil imports have increased by 37 percent by December 2025.
According to the Solvent Extractors Association of India, soybean oil imports rose to 5.05 lakh tonnes (lt) in December from 3.71 lt a year ago. However, for the period November-December 2025, this was somewhat short compared to the shipments a year ago. Argentina is the main supplier to India, exporting 5.92 liters in the October-November period, while another 1.05 liters came from China, while Brazil accounted for 98,500 tonnes.
On the domestic front, farmers in Madhya Pradesh are benefiting from the Soyabean Bhavantar Bhugtan Yojana (BBY) for kharif 2025-2026. Since December 2025, around 16 liters of soybeans have been sold by farmers under the scheme, against the approved quantity of 22 liters by the Madhya Pradesh government.
Win: win
Sanjeev Asthana, SEA president, said earlier this week that the reintroduced Bhavantar mechanism has once again created a win-win arrangement for farmers, industry and the government.
Farmers are protected from price problems and assured of remunerative returns, while the processing industry can purchase soybeans at competitive prices without supply disruptions or market disruptions. At the same time, the government avoids the logistics, storage and tax burdens associated with large-scale physical purchasing.
BBY is a payment scheme in case of price shortages, whereby farmers are assured of the declared Minimum Support Price (MSP) for soybeans, without the government having to make physical purchases.
Under the scheme, if the prevailing mandi prices fall below the MSP, the difference will be directly credited to farmers’ Aadhaar-linked bank accounts through direct benefit transfer.
SEA data showed that India imported 8.75 liters of soybean oil in the November-December period of the 2025-26 oil year, compared to 8.8 liters in the corresponding period of the previous oil year 2024-25. The oil year runs from November to October.
Soyabean prices in the domestic market have risen to levels of ₹5,200-5,250 from ₹4,500 a month ago. In the same period a year ago, soyabean prices stood at ₹4,140 per quintal.
Published on January 23, 2026
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