India has cancelled additional imports of South American soy oil as the sharp depreciation of the rupee raises costs for overseas purchases, traders said on Tuesday. The weaker currency has made dollar-denominated imports more expensive, prompting buyers to scale back commitments amid volatile global markets.
India, the world’s largest importer of edible oils, typically sources soy oil from countries such as Brazil and Argentina. However, the recent slide in the rupee has reduced the attractiveness of fresh imports, leading refiners to defer or cancel shipments scheduled for the coming months. Market participants noted that softer domestic demand and ample inventories have also contributed to the decision.
With margins under pressure, buyers are increasingly cautious about locking in high-priced imports while currency risks remain elevated. The reduction in Indian demand could weigh on South American soy oil exports in the near term, even as global vegetable oil markets remain sensitive to currency movements, weather conditions, and policy changes. Analysts expect import decisions to remain conservative until the rupee stabilizes or global prices ease further.
