MercoPress. South Atlantic News Agency

Soy-oil: Argentina hopeful India will replace China as main client

Industry Minister Deborah Giorgi made the announcement after meeting with the Indian ambassador

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.