NEW DELHI, Sept. 29 -- Uruguay is taking a leaf out of Argentina's playbook and developing its edible-oil seeds sector with an eye on the Indian market as it seeks to diversify agricultural exports, Alberto Antonio Guani Amarilla, the South American nation's ambassador, said in an interview.

"We are developing the production of oil, but it's very low. We are doing it in the sense of having India on the horizon as a future market," said Amarilla. "So, we are trying to learn from the Argentinians how to produce that oil. We're trying to see that this is a monumental market that we need to have enough capability to satisfy the needs of India."

Argentina leads Malaysia and Indonesia in selling edible oil to India. Argentina exported $3.66 b...