Abiove and Indian association sign memorandum to strengthen trade

The Brazilian Association of Vegetable Oil Industries (Abiove) and the Solvent Extractor’s Association of India (SEA) signed a memorandum of understanding to strengthen trade relations between India and Brazil and facilitate the supply of soybean chain products to the Asian country.

The agreement was signed at the International Seminar - Perspectives and the Future of India and Brazil, held in New Delhi, and was attended by the Minister of Agriculture, Carlos Fávaro. SEA is India's largest vegetable oil organization. The entity has more than 700 members and works with government agencies, industries and importers to develop the sector in the country.

“India is a very important market for Brazilian products and we see great potential to be strengthened. In the last decade, soybean oil trade between the two countries has grown a lot and we hope to be able to continue to contribute to the development of this sector by exchanging experiences and with an ever greater proximity between entities from both countries”, says André Nassar , president of Abiove, who signed the memorandum together with Ajay Jhunjhunwala, president of SEA.

The document provides that the two countries, through their associations:

• hold periodic meetings between importers from India and exporters from Brazil;

• promote the exchange of information about production, capacity and opportunities that arise among associated members;

• strengthen relations between the two countries by holding visits, workshops and conferences;

• cooperate with the supply, use and trade of grains, oil and soybean meal, in addition to other oilseeds, to increase the added value of products;

• enable an institutional platform to promote public-private partnerships and reduce barriers to trade in oilseeds and their products;

• promote technological exchange to increase productivity and facilitate scientific cooperation.

India is the largest importer of edible oils in the world, with the arrival of around 15 to 16 million tons of the product per year. Soybean oil is responsible for around 4 million tons of this amount, most of which comes from Latin America. Brazil is second in market share, being the origin of 39,5% of the soybean oil purchased by India between January and September this year. Argentina is the main exporter to the Asian country, accounting for around 50% of the volume imported by India.