Duty Cuts in Argentina Likely to Keep Soy Oil Prices Competitive

13-Jun-2026 12:24 PM

Mumbai: Argentina, located in Latin America, is the world's leading exporter of soybean oil and soy meal, significantly influencing global market prices for soy oil.

The government there has decided to gradually reduce export duties on soy oil, a move likely to keep prices competitive in the near future. This could provide significant relief to India, which remains the world's largest buyer of edible oils, including soy oil.

The Argentine government has decided to lower export duties on soy oil starting in January 2027, with the process continuing through December 2028. This measure will help enhance the competitiveness of its soy oil in the global market.

The President of Argentina announced that, beginning in January 2027, the export duty on soy oil would be reduced by either 0.25% or 0.50% each month. This implies a reduction of 1% or 2% every four months, and 3% or 6% over the course of a year. Within two years, the total reduction would reach 6% or 12%. The President announced the duty cuts on May 21, and the decision was published in the official gazette on June 3.

Currently, an export duty of 24% applies to soy oil in Argentina; plans are in place to reduce this to 21% next year and eventually to 15% by December 2028.

The reduction in export duties is expected to accelerate soy oil shipments from Argentina, potentially providing a strong incentive for local farmers to increase soybean production. Since India sources the largest share of its soy oil imports from Argentina, it stands to benefit significantly from this development.