Soy-oil: Argentina hopeful India will replace China as main client
India could become the main buyer of Argentine soybean oil according to Industry Minister Deborah Giorgi. The official made the announcement following a meeting on Monday with Indian in Buenos Aires Rengaraj Viswanathan.
A group of Indian businessmen is also expected in Argentina next September in order to deepen bilateral relations, added Ms Giorgi.
“The Indian diplomat ratified that Argentina is to become the number one market for the Asian country with regards to soybean oil imports”, in moments in which China -until now the number one buyer of the aforementioned Argentine product-, has placed numerous entry obstacles for alleged trade reasons said Ms Giorgi.
Next October, Indian vegetable oil importers will visit Argentina to deepen the trade relationship with the local oilseed sector.
The ambassador warned that his country went from buying two million tons of soybean oil at a local level in 2002 to eight million in 2009, and it is expected to buy 17 million tons by 2021.
He added that Indian businesses increased in 2010 the purchase of this oil in Argentina up to 1.7 million tons, which implies sales for 1.1 billion US dollars, in a context of reduced shipments to China, which is the main Argentine soybean oil buyer.
The Indian delegation announced for next September includes agriculture, communications, information technology, farm machinery, and foodstuffs businessmen according to Argentina’s Industry Ministry.
Argentina has been in conflict with its main client for soy-oil, China since the government of President Cristina Kirchner imposed additional levies on Chinese imports to protect domestic production.
The reiteration of the measure by Argentina led Beijing to demand a stricter sanitary framework regulation for residual substances in soy-oil which has meant the closure of the market to Argentine produce.
In spite of on going negotiations and a recent trip by Mrs. Kirchner to Beijing when the special relation between both countries was ratified, the issue remains stalled.
Suggested Stories
-
Feb 09th 2012
Mujica says Mercosur is “a chewing gum”; promises trade deals with third countries
-
Feb 09th 2012
Trade restrictions, main point of agenda when Cristina Fernandez visits Chile
-
Feb 09th 2012
Argentina limits daily financial transaction per person to 1.000 Pesos (230 dollars)
-
Feb 09th 2012
Argentine ‘Congress index’ shows January inflation reached 1.9%
7 comments Feed
Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.
Life is like this
www.commodityonline.com/commodities/oil-oilseeds/soyabeanoil.php
September future prices are also higher than the old price agreed with the Chinks....
We could call this a Win - Win situation.
We showed the Chinese that we do not “bow too low” and we get a better price for the oil.
Nice Cristina and the team!
It is good to diversify our trade else any unilateral action from a big client can cause us a big hole, like happen with Argentina in 1930 with UKI.
I go for the idea to become less and less, and less dependent of the export agri-business sector, even today AB is a little 7% of the GDP we have to expand more the exporting industrial sector.
If neighboring countries sells more commodities and they expand their economies we can sale to them more manufactured products and processed food.
We also have little trade with Africa and Middle East we can export there a lot of things see Brazil how sells to Nigeria for example they represent the 10% of Nigeria Imports. And Nigeria has a GDP bigger than Chile now 170bn.
South Africa 280bn all bigger exporters like China, Germany, Brasil, ect export to countries like this.
We are obsessed with Europe and US exporting to Europe or USA or China is 100% more difficult than to export to little countries or medium sizes countries.
Well I start to sound like The Economist haha
I just wonder were are fellow Fl@nders and the Royal Navy has anyone seen them?
Royal Navy? You're not supposed to see them. They see you!
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!