(Photo: Mr. Idigoras talking at the ISSOC 2019 conference, also sponsored by CIARA)
Buenos Aires, July 24th. Last week, the chief of the Vegetal Oils Industry Chamber (CIARA), Gustavo Idígoras, gave a lecture at the third International Sunflower Seed and Oil Conference (ISSOC) in Mumbai, hosted by the Solvent Extractors’ Association of India (SEA).
Argentina has a strategic interest in supply sunflower oil to the Indians processors. The country is increasing its production (3.8 MMT 2018/19 campaign); the crushing industry processed 3.2 MMT last year and exported 573,000 tons of crude oil, 82,000 of them was delivered to Indian purchasers.
In its presentation, Mr. Idigoras said that to 2021, the domestic industry will produce 1.6 MMT of sunflower oil, an output that balance domestic consumption with export demand in equal parts. Thus, Idígoras added, Argentina will be able to supply 400,000 tons to India, or 50% of the total exports.
In a press release from CIARA, the chamber stresses that India will import 9.8 MMT of veg oils this year, 1.8 million of them will be soybean oil and 1.6 M of sunflower oil. India is the largest customer of Argentine veg oils but based on soybean oil.
The domestic industry has the challenge to compete with the Ukranian sunflower oil, which accesses to India with advantage due to its geographical proximity and its excellent quality. Due to this, a technician from the Fat and Oils Argentinian Association (ASAGA) traveled to India to explain and demonstrate that local sunflower oil is so good as the Ukranian one, basically because it has the same waxes content. “Then, there is no more reason to price penalization of our product”, a source from the industry told to eFarmNewsAr.com.
“We are confident that we are able to increase our sunflower oil exports to India, based in the successful precedent of the soybean oil exports”, the CIARA’s spokesperson Andrés Alcaraz told to eFarmNewsAr.com. “India is also increasing its vegoils demand due to the middle-class expansion”, he added.
The source added that the industry is also looking for a duty preference for the soybean oil in the Indian market. “India is our largest customer, but if we can access this preference, we will able to increase our supply”, he said.