Soy oil is the oil extracted from soybeans. Crude soybean oil undergoes further refinement- degumming, refining, bleaching, and deodorizing and forms refined soy oil. Soybean oil is the leading vegetable oil traded in the international markets, next only to palm oil. It has a share of 24% in total vegetable oil consumption. Soy oil accounts for nearly 75% out of total vegetable oil in-take in the US. Soy oil is cholesterol-free and high in polyunsaturated fat. Soy oil is light in flavor and has almost no odor. 

Uses of Soybean Oil

  • Soybean oil is one of the most important edible oils used in India.

  • Used in cooking and frying foods. Margarine is a product made from soybean oil. Salad dressings and mayonnaises are made with soybean oil.

  • Some foods are packed in soybean oil (tuna sardines, etc.), baked breads, crackers, cakes, cookies and pies usually have soybean oil in them.

  • Lecithin is a product extracted from soybean oil, and it is a natural emulsifier and lubricant.

Factors influencing the price

  • Production dependence upon agro-climatic conditions e.g., rainfall, temperature etc.

  • Concentration of production base in few countries (USA, Argentina, Brazil) as against its widespread consumption base

  • Its close link with its internationally traded substitutes (Palm, Mustard oil), and its base raw material (soybean) in addition to its co-derivative (soy meal)

  • The crush margin between Oil, Meal and seed

  • Government Import Policy

  • The nature of the existing long drawn value chain.