India Soybean Oil Import Market -- HS 1507 Trade Data & Price Trend (Q2 2025)

India Soybean Oil Import (HS 1507) Key Takeaways

India's soybean oil imports under HS code 1507 surged in Q2 2025, reaching $3.49 billion as monthly values climbed steadily, driven by a duty cut on crude oil and seasonal demand. The market is dominated by crude soybean oil (80% of import value), with pricing power favoring domestic refiners due to lower tariffs on raw materials. Supplier concentration is high, with a core group handling 91.6% of import value, creating vulnerability to supply shocks from key origins like Argentina, which accounts for nearly half of shipments. This analysis covers 2025 Q2 and is based on cleanly processed customs data from the yTrade database.

India Soybean Oil Import (HS 1507) Background

What is HS Code 1507?

HS Code 1507 covers soybean oil and its fractions, whether or not refined, but not chemically modified. It is a staple in food processing, cooking, and industrial applications like biodiesel, driven by its affordability and high smoke point. Global demand remains stable due to its versatility and India's reliance on imports to meet domestic edible oil shortages.

Current Context and Strategic Position

In Q2 2025, India reduced import duties on crude soybean oil from 20% to 10%, lowering the effective duty to ~16.5%, while refined oils retained a higher 32.5% tariff [FAS USDA]. This policy shift aimed to curb inflation and boost crude oil imports, with Argentina supplying 45% of India’s soybean oil imports in April [YTrade]. India’s soybean oil import value surged 95% YoY in H1 2025, highlighting its strategic dependence on foreign supply [GTAIC]. Vigilance on hs code 1507 trade data is critical, as tariff adjustments and geopolitical risks (e.g., U.S. duties on Indian goods) could disrupt India’s soybean oil import dynamics.

India Soybean Oil Import (HS 1507) Price Trend

Key Observations

India's soybean oil imports under HS code 1507 demonstrated robust growth in Q2 2025, with monthly values climbing from $1.11 billion in April to $1.23 billion in June. This upward trajectory resulted in a quarterly total of approximately $3.49 billion, reflecting heightened import activity during this period. The India Soybean Oil Import trend highlights a consistent expansion in value terms, driven by underlying market forces.

Price and Volume Dynamics

The hs code 1507 value trend shows a notable recovery and sustained increase from a February low of $915.73 million. Values rose sequentially each month from March ($1.07 billion) through June, indicating strengthening import momentum entering Q2. This growth aligns with typical post-harvest inventory builds and seasonal demand increases in India's edible oil sector, where import volumes often ramp up ahead of peak consumption periods. The steady MoM gains suggest responsive market adjustments to supply and pricing signals.

External Context and Outlook

The import surge in Q2 was likely influenced by India's reduction of import duties on crude edible oils from 20% to 10% in May 2025, which lowered effective costs and encouraged higher purchase volumes [USDA]. This policy shift, aimed at curbing domestic inflation and supplementing local shortages, provided a tailwind for import growth. With continued reliance on key suppliers like Argentina and no major trade barriers reported, the outlook remains positive for sustained import values, though market participants should monitor global price volatility and policy updates (USDA).

India Soybean Oil Import (HS 1507) HS Code Breakdown

Product Specialization and Concentration

According to yTrade data for 2025 Q2, India's import of HS Code 1507 is heavily concentrated in crude soybean oil, specifically under sub-code 15071000 for vegetable oils; soya-bean oil and its fractions, crude, whether or not degummed, not chemically modified. This sub-code accounts for over 80% of the total import value, despite representing a smaller share of the weight, due to its higher unit price of 5.03 USD per kilogram. A minor anomaly exists with sub-code 15079090, which has a significantly higher unit price of 16.77 USD per kilogram but negligible import volume, indicating it is an isolated, specialized product not reflective of the main market.

Value-Chain Structure and Grade Analysis

The non-anomalous imports under India's HS Code 1507 trade data can be grouped into two main categories based on processing stage: crude soybean oil (15071000) and refined soybean oil (15079010). Crude oil imports have a higher value per unit, while refined oil dominates in shipment frequency and volume with a lower unit price of 3.42 USD per kilogram. This structure points to a trade in fungible bulk commodities, where prices are likely influenced by global indices and processing costs, rather than differentiated manufactured goods.

Strategic Implication and Pricing Power

The dominance of crude soybean oil in India's HS Code 1507 import strategy suggests that buyers have pricing power focused on securing raw materials for domestic refining, especially given the duty reduction on crude oils to 10% in May 2025, as reported by USDA Gain Report. This policy shift supports increased import volumes for crude oil, while refined oils face higher tariffs, guiding market players to prioritize crude sourcing to capitalize on cost efficiencies and supply stability.

Check Detailed HS Code 1507 Breakdown

India Soybean Oil Import (HS 1507) Origin Countries

Geographic Concentration and Dominant Role

Argentina is the dominant origin for India's Soybean Oil imports in Q2 2025, holding a 47.49% value share. Its weight share of 50.55% is slightly higher than its value share, indicating bulk imports of crude or lower-grade soybean oil. Nepal shows a high frequency share of 82.50% but a lower value share of 16.17%, suggesting frequent, small-scale shipments, possibly for retail or niche markets, while its weight share is omitted due to data anomalies.

Origin Countries Clusters and Underlying Causes

The origins cluster into two groups based on trade profiles. Argentina and Brazil form a volume cluster with high weight and value shares, driven by their roles as major soybean producers supplying bulk oil to meet India's demand. Brazil's value share of 21.01% exceeds its weight share of 17.69, hinting at some premium or refined oil imports. Nepal stands out as a transactional cluster due to its extremely high frequency, likely due to geographic proximity or trade facilitation for smaller consignments.

Forward Strategy and Supply Chain Implications

India's heavy reliance on Argentina for nearly half of its Soybean Oil import value creates supply chain risks, urging diversification to origins like the US or Brazil. The recent duty cut on crude soybean oil to 10% in May 2025 [USDA Report] may boost imports from cost-effective sources, but current low shares from the US (5.79% value) suggest untapped potential. Monitoring HS Code 1507 trade data will help adjust sourcing strategies amid market volatility.

Table: India Soybean Oil (HS 1507) Top Origin Countries (Source: yTrade)

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India Soybean Oil (HS 1507) Suppliers Analysis

Supplier Concentration and Dominance

According to yTrade data, the India Soybean Oil Import suppliers market in Q2 2025 was highly concentrated. A core group of high-value, high-frequency suppliers dominated, accounting for 91.6% of the total import value. These suppliers handled 86.62% of the quantity across 88.11% of all shipments, making them the typical trade channel. The median shipment from this group involved substantial volume and consistent activity.

Strategic Supplier Clusters and Trade Role

The remaining suppliers fall into three smaller groups. One set provides high value but with low shipment frequency, contributing 4.6% of value. Another group ships often but with lower per-shipment value, adding 1.81% to the import value. A final cluster has low value and low frequency, accounting for 1.98% of value. The profile of HS code 1507 suppliers in the dominant group, including names like Narayani Oil Refinery and Pashupati Khadya Tel Udyog, points to a Direct-to-Factory market. These are processing entities, not traders or agents, indicating imports go straight to refiners or blenders.

Sourcing Strategy and Vulnerability

India's heavy reliance on a small core of high-volume suppliers creates vulnerability to supply shocks or price changes from key origins like Argentina. The strategic focus should be on diversifying sources, especially given the USDA report noting India's reduced crude oil duties to boost imports. This policy shift favors crude soybean oil buyers, aligning with the dominant supplier pattern of direct industrial procurement. Importers should monitor supplier stability and explore new origins to mitigate concentration risk.

Table: India Soybean Oil (HS 1507) Top Suppliers List (Source: yTrade)

Check Full Soybean Oil Supplier lists

Action Plan for Soybean Oil Market Operation and Expansion

Strategic Supply Chain Overview

India's Soybean Oil Import market under hs code 1507 trade data is a bulk commodity trade. Price is driven by global soybean indices and processing costs. The dominance of crude oil imports reflects a strategic focus on securing raw materials for domestic refining. This creates price sensitivity to origin-country harvests and export policies.

The Soybean Oil supply chain shows high concentration risks. India relies heavily on Argentina for nearly half its imports. This creates vulnerability to supply shocks or price spikes from a single origin. The market structure is direct-to-factory, with refiners importing crude oil in bulk to capitalize on lower duties. This underscores India's role as a processing hub, not just a consumption market.

Action Plan: Data-Driven Steps for Soybean Oil Market Execution and Expansion

• Diversify sourcing origins using hs code 1507 trade data. Track and compare shipment volumes and values from alternative suppliers like the US or Brazil. This reduces over-reliance on Argentina and mitigates supply disruption risks.
• Monitor policy shifts affecting crude oil tariffs. Use trade intelligence to anticipate duty changes and adjust procurement timing. This allows importers to maximize cost savings under favorable tax regimes.
• Analyze supplier shipment frequency and volume patterns. Identify and engage with high-frequency, high-volume suppliers to secure stable contracts. This ensures consistent supply and better negotiation leverage.
• Segment imports by oil grade (crude vs. refined). Use detailed hs code 1507 trade data to prioritize crude oil purchases aligned with duty advantages. This optimizes cost efficiency and supports domestic refining margins.

Take Action Now —— Explore India Soybean Oil Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Soybean Oil Import 2025 Q2?

India's soybean oil imports surged in Q2 2025, reaching $3.49 billion, driven by a May 2025 duty cut on crude oil from 20% to 10%. This policy shift encouraged bulk imports of crude soybean oil, which dominates 80% of import value under HS Code 1507.

Q2. Who are the main origin countries of India Soybean Oil (HS Code 1507) 2025 Q2?

Argentina supplied 47.49% of India's soybean oil imports by value, followed by Brazil (21.01%) and Nepal (16.17%). Argentina’s higher weight share (50.55%) indicates bulk crude oil shipments, while Nepal’s high frequency suggests small-scale trade.

Q3. Why does the unit price differ across origin countries of India Soybean Oil Import?

Price differences stem from product grades: crude soybean oil (HS 15071000) averages $5.03/kg, while refined oil (HS 15079010) costs $3.42/kg. Argentina’s bulk crude shipments are cheaper, whereas Brazil’s higher value-to-weight ratio hints at some premium-grade oil.

Q4. What should importers in India focus on when buying Soybean Oil?

Importers should prioritize crude soybean oil to leverage duty savings and diversify suppliers to reduce reliance on Argentina (47.49% share). The dominant supplier cluster (91.6% of value) indicates direct factory procurement, so stability monitoring is critical.

Q5. What does this India Soybean Oil import pattern mean for overseas suppliers?

Suppliers like Argentina have a stable, high-volume market, but India’s duty cuts create opportunities for new origins (e.g., the US, currently at 5.79% share). Refiners should note India’s preference for crude oil over refined due to tariff advantages.

Q6. How is Soybean Oil typically used in this trade flow?

India imports crude soybean oil (80% of value) primarily for domestic refining, while refined oil serves niche markets. The direct-to-factory supply chain suggests bulk processing into edible oils or industrial blends.

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