The aggressive purchases will help Argentina cut its soyoil stocks, but could also mean fewer palm oil shipments from Indonesia and Malaysia to India.

The soyoil purchases are for October-to-March shipment, the dealers said, declining to be identified as the deals were made by private trading houses.

The volume bought in such a short period is unprecedented, said a New Delhi-based dealer with a trade house, as traders largely ignored palm oil.

Argentina on Monday temporarily scrapped, export taxes on various farm goods, including soybeans, in a bid to accelerate overseas sales and bring in much-needed U.S. dollars to support its weakening peso.

India, the world’s biggest buyer of vegetable oils, typically imports just under 300,000 tons of soyoil a month, and the size of this week’s purchase highlights the impact of Argentina’s decision, the dealers said.

The soyoil was bought at $1,100 to $1,120 a ton, including cost, insurance and freight (CIF), the dealers said.

“As prices corrected by around $50 following the duty exemption, Indian buyers rushed to make purchases, finding it cheaper than palm oil,” one of the dealers added.

India’s soyoil imports fell 25.27% to a four-month low of 367,917 tons in August, according to the leading trade body, the Solvent Extractors’ Association of India.

India buys palm oil mainly from Indonesia and Malaysia, while it sources soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.

India’s overall vegetable oil imports in August rose 4.7% month-on-month to 1.62 million tons, the highest since July 2024 as purchases of palm oil and sunflower oil increased.

Demand for edible oils, particularly palm oil, in India usually rises during the festival season due to higher consumption of sweets and fried foods.