India is exploring Mozambique as a potential source of oilseeds as part of efforts to strengthen edible oil supplies and diversify import origins, with the Solvent Extractors’ Association of India (SEA) signing an agreement to promote cooperation.
The initiative is aimed at developing stronger trade links between Indian importers and Mozambique’s oilseed sector. Greater sourcing from Mozambique could provide Indian processors with an additional supply channel and help diversify the country’s edible oil import basket.
India is one of the world’s major edible oil consumers and relies significantly on imports to meet domestic demand. Palm oil, soybean oil and sunflower oil account for a large share of the country’s imports, while domestic production of oilseeds remains an important focus for reducing import dependence.
The agreement between SEA and its Mozambican counterpart is expected to facilitate greater engagement between industry stakeholders, including producers, processors, exporters and importers. It could also support information sharing and the development of commercial partnerships.
Mozambique has agricultural potential and produces a range of oilseed and agricultural commodities. Expanding trade with India could provide its producers with access to one of the world’s largest edible oil markets.
For India, sourcing oilseeds directly from producing countries could also support domestic crushing and processing industries, allowing imported raw material to be converted into edible oil within the country.
The initiative comes amid continued efforts by India’s edible oil industry to secure stable and diversified supplies. Market conditions, crop availability, logistics costs and applicable import policies will influence the scale of future oilseed trade between India and Mozambique.