India to buy $1.5 billion in Argentine soyoil in 2010.

India will buy $1.5 billion in Argentine soyoil in 2010, almost three times more than last year, the Indian Ambassador to Buenos Aires said on Monday, indicating the Asian country will continue easing the impact of a Chinese boycott of Argentine soyoil.

Argentina is the world's biggest supplier of soybean oil, but exporters have been forced to look for new markets after top buyer China halted imports in late March in retaliation for Argentine import curbs on several Chinese goods.


India replaced China as the biggest market for Argentine soybean oil in April and May, according to a report by a Buenos Aires based consultancy firm last month .

"India is expected to buy $1.5 billion in Argentine soyoil in 2010 and it could be even more," Ambassador Rengaraj Viswanathan told Reuters after meeting with Foreign Minister Hector Timerman, who announced the agreement on Monday via Twitter.

"In the first six months of this year we've already imported $1.02 billion ... Argentina is No. 1 in soyoil in India, it makes up about 90 percent of our soyoil imports," Viswanathan added.

Total purchases of the oil are expected to reach $1.5 billion in 2010, a nearly 150 percent increase from last year, when India spent $606 million on Argentine soyoil.

In addition, India's investment in Argentina is expected to double to $2 billion in the next three years, Viswanathan said.

"In Argentina, there are opportunities for Indian imports, exports and investment. It's an attractive market, we are optimistic about the opportunities here," Viswanathan said about India's investment in Argentina's energy, mineral and agricultural sectors.

India, the world's biggest importer of edible oils, relies heavily on palm oil imported from Indonesia and Malaysia to meet its needs, but it also buys soybean oil from Argentina and neighboring Brazil.

India's market has proved key for Argentine exporters trying to fill a huge gap left by China, which froze imports in a trade dispute that shows no clear signs of being resolved.

India accounted for 44 percent of Argentine soyoil shipments in April and May, making it Argentina's top customer, according to a report published by the Buenos Aires-based consultancy Abeceb.com.

China represented 46 percent of the South American nation's total sales during the same period a year ago, but just 1 percent this year.

Source : moneycontrol.com