INDIA’S edible oil imports fall 30% in June as palm, soybean oil shipments decline
India’s edible oil imports fell 30% year-on-year to 11.11 lakh tonnes in June 2026, led by lower palm and soybean oil purchases as global biofuel mandates raised prices. However, cumulative imports for the oil year increased 7% to 103.88 lakh tonnes.
Mangaluru: India’s edible oil imports fell by 30% in June 2026 as lower shipments of palm oil and soybean oil reduced overall arrivals, with the industry attributing the decline to rising global prices driven by expanding biofuel mandates in key producing countries.
According to the Solvent Extractors’ Association of India (SEA), the country imported 11.11 lakh tonnes of edible oil in June 2026, down from 15.97 lakh tonnes in the same month last year, The Hindu Businessline reported.
BV Mehta, Executive Director of SEA, said the decline was largely due to lower palm oil imports, which fell to 4.87 lakh tonnes in June from 5.46 lakh tonnes in May and 9.52 lakh tonnes in June 2025.
Soybean oil imports also declined to 3.80 lakh tonnes in June from 4.93 lakh tonnes in the previous month.
Mehta said palm oil lost its price advantage over soft oils such as soybean oil, with the price gap narrowing to less than US$50 per tonne, reducing its attractiveness to Indian buyers.
He attributed the decline in imports to the impact of biofuel policies introduced by Indonesia, Malaysia and the United States, which have increased the use of vegetable oils for fuel production.
“The drop in Indian buying is a ripple effect of simultaneous biofuel mandates introduced by Indonesia, Malaysia and the US. These policies are pulling millions of tonnes of vegetable oils out of the food economy and into the fuel economy, driving up global spot prices,” Mehta said.
Despite the decline in June, cumulative edible oil imports during the first eight months of the 2025-26 oil year (November-October) increased 7% to 103.88 lakh tonnes, compared with 97.29 lakh tonnes during the corresponding period of the previous year.
Imports of refined edible oils from Nepal continued at a significant pace. During November-April of the current oil year, Nepal exported about 3.38 lakh tonnes of refined edible oils to India, including 2.97 lakh tonnes of refined soybean oil, along with refined sunflower oil, RBD palmolein and rapeseed oil. Exports from Nepal were estimated at 54,000 tonnes in May and 32,000 tonnes in June, mainly comprising refined soybean oil. Nepal enjoys duty-free access to the Indian market under the South Asian Free Trade Area (SAFTA) agreement.
The composition of imports also changed during the current oil year. India imported 100.18 lakh tonnes of crude edible oil and 3.68 lakh tonnes of refined oil during November-June, compared with 82.29 lakh tonnes of crude oil and 14.99 lakh tonnes of refined oil in the same period a year earlier. As a result, refined oils accounted for only 4% of total imports, down from 15% last year, while crude oils made up 96%, reflecting higher imports of crude palm oil.
Crude palm oil remained India’s largest imported edible oil at 49.42 lakh tonnes during the first eight months of the oil year, followed by 32.73 lakh tonnes of crude and refined soybean oil and 20.94 lakh tonnes of sunflower oil.
Malaysia exported 19.81 lakh tonnes of palm oil to India during the period, while imports from Indonesia stood at 19.04 lakh tonnes. Argentina supplied 18.54 lakh tonnes of crude soybean oil and 4.85 lakh tonnes of sunflower oil, while Russia exported 48,650 tonnes of crude soybean oil and 9.88 lakh tonnes of sunflower oil.
Mehta said India also sourced smaller volumes from Thailand, Brazil, Ukraine, China, Nepal, the UAE and other countries, indicating a diversified import basket.
Global edible oil prices remained higher than a year ago. Compared with June 2025, prices of crude palm oil rose 17%, RBD palmolein 18%, soybean oil 14% and sunflower oil 19%. Mehta also said the Indian rupee had depreciated by more than 11% over the past year, increasing the cost of imports for refiners.
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Source : ChiniMandi
