Rupee exchange rate plummeted, India cancels more soybean oil imports from South America.

India, the world's largest importer of vegetable oils, has cancelled multiple soybean oil import contracts from South America as the rupee has fallen to a historic low, widening the price gap between domestic and imported oils. Ashish Acharya, Vice President of one of India's leading vegetable oil purchasing companies, Patanjali Food Limited, said that they have cancelled about 35,000 to 40,000 tons of soybean oil shipments from Brazil and Argentina that were scheduled for delivery from February to April to July, with the total canceled amount expected to exceed 50,000 tons. Several other traders contacted by the media confirmed this action. In December last year, Indian buyers had already cancelled over 100,000 tons of soybean oil orders from Argentina, accounting for about 20% of India's monthly soybean oil imports. Nearly 60% of India's edible vegetable oil consumption relies on imports. Acharya explained in an interview that the depreciation of the rupee combined with rising international prices have made South American soybean oil prices $25 to $30 per ton higher than Indian domestic oils. This price difference has made importing soybean oil less cost-effective, leading buyers to abandon import orders and turn to discounted tropical vegetable oils with more attractive pricing. Data shows that since the beginning of this year, the premium of soybean oil over palm oil has doubled, currently standing at around $145 per ton.