The Brazilian Association of Vegetable Oil Industries (Abiove) and the Solvent Extractor's Association of India (SEA) signed a memorandum of understanding to strengthen trade relations between India and Brazil and facilitate the supply of soybean chain products to the Asian country . The agreement was signed at the International Seminar – Perspectives and the Future of India and Brazil, held in New Delhi, and was attended by the Minister of Agriculture, Carlos Fávaro. SEA is India's largest vegetable oil organization. The entity has more than 700 members and works with government agencies, industries and importers to develop the sector in the country.
“India is a very important market for Brazilian products and we see great potential to be strengthened. In the last decade, soybean oil trade between the two countries has grown significantly. André Nassar, president of Abiove, expressed his desire to continue contributing to the development of the sector. He signed the memorandum together with Ajay Jhunjhunwala, president of SEA, aiming to exchange experiences and bring greater proximity between entities from both countries.
Strategic agreement between India and Abiove to strengthen trade in soybean oil and oilseeds
The document provides that the two countries, through their associations, hold periodic meetings between importers from India and exporters from Brazil. Furthermore, promote the exchange of information about production, capacity and opportunities that arise among associated members.
They also aim to strengthen relations between the two countries by holding visits, workshops and conferences. The cooperation will cover the supply, use and trade of grains, oil and soybean meal, in addition to other oilseeds, aiming to increase the added value of the products.
Another planned initiative is the creation of an institutional platform to promote public-private partnerships and reduce barriers to trade in oilseeds and their products. Furthermore, technological exchange will be promoted to increase productivity and facilitate scientific cooperation.
India is the largest importer of edible oils in the world. After all, the entry of around 15 to 16 million tons of the product per year demonstrates its significant demand for edible oils. In fact, soybean oil plays a fundamental role in this scenario. Soybean oil is responsible for around 4 million tons of this amount, most of which comes from Latin America.
When analyzing the origin of this oil, it appears that Brazil is the second largest supplier to India. Well, it accounts for 39.5% of the soybean oil purchased by India between January and September this year.
On the other hand, Argentina stands out as the main exporter to India, contributing around 50% of the volume imported by the Asian country. This is due to the commercial relations established between the two countries.
Source: Notícias Agrícolas
