India’s palm oil imports to rise from five-year low thanks to competitive prices
India expects palm oil imports to surge nearly 20% in 2025/26 to 9.3M tonnes, driven by strong price discounts versus soybean and sunflower oils. Total edible oil imports may hit a record 16.5–17M tonnes. Soybean oil purchases could slightly rise, while sunflower oil declines due to Black Sea supply issues and higher prices.
India, the world’s largest palm oil buyer, expects imports to grow by nearly 20% in the new marketing year, which began on November 1. Competitive palm oil prices are stimulating demand, helping this tropical product regain market share.
According to Sanjeev Asthana, president of the Vegetable Oil Exporters Association of India (SEA) and director of Patanjali Foods Ltd, palm oil imports could increase to 9.3 million tonnes from 7.58 million tonnes in the previous marketing year, the lowest in five years. Previously, imports had fallen by 15.9% due to the high price of palm oil compared to soybean oil.
Palm oil is currently trading at a discount of about $100 per ton to soybean oil and over $200 per ton to sunflower oil, prompting buyers to book supplies for the coming months. This, in turn, could reduce inventories in key producing countries such as Indonesia and Malaysia and support Malaysian palm oil prices.
Soybean oil imports in the new season are forecast to slightly exceed last year’s record of 5.47 million tons, while sunflower oil purchases may decline to 2-2.5 million tons due to drought damage to crops in the Black Sea region, which has significantly increased prices. India’s total vegetable oil imports in the new season are forecast to reach a record 16.5-17 million tons, up from 16 million tons last year.
Furthermore, SEA signed a memorandum of understanding with the Federation of Oils, Seeds, and Fats Associations to enhance knowledge sharing and prevent trade disputes during imports. This will enable the Indian industry to more effectively respond to market fluctuations and maintain supply stability.
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Source : Ukr Agro Consult
