Rising Global Prices, Tight Supply Drag Palm Oil Supply Three-month Low
India’s palm oil imports fell 19% in March to a three-month low as high global prices and tight supply curbed demand. Overall edible oil imports dropped 9%, while sunflower oil surged on competitive pricing. Lower imports may tighten domestic stocks, but buying could rise ahead of monsoon and festive demand.
India’s palm oil imports fell nearly 19 per cent in March to a three-month low, as higher global prices for tropical oils, linked to firm energy markets and lower production in major suppliers, curbed buying by domestic refiners, according to industry data released on Monday by the Solvent Extractors’ Association of India (SEA).
Palm oil arrivals dropped to 689,462 metric tons in March from 847,689 tons in February, marking the lowest level since December 2025. The decline comes at a time when benchmark palm oil futures in Malaysia hovered near multi-month highs amid tight supply, robust biodiesel demand, and congestion in key exporting ports such as Indonesia and Malaysia.
The slowdown in imports is expected to tighten India’s domestic inventories and support local oilseed prices, including soybean and mustard, in the short term. However, analysts said the country, being the world’s largest importer of edible oils, may need to step up overseas purchases later this summer to replenish stocks ahead of the festive season and monsoon-driven consumption demand.
Soyoil imports also edged lower, slipping 4 per cent month-on-month to 287,220 tons, SEA data showed. In contrast, sunflower oil arrivals surged nearly 35 per cent to 196,486 tons as importers took advantage of competitive pricing and steady shipments from the Black Sea region, particularly Ukraine.
Overall edible oil imports declined about 9 per cent from the previous month to 1.17 million tons in March, the lowest since April 2025. The fall largely reflected weaker palm and soyoil purchases, which together account for nearly 85 per cent of India’s import basket.
India relies on imports to meet nearly two-thirds of its edible oil requirements. Palm oil, sourced mainly from Indonesia and Malaysia, typically comprises about half of total imports due to its price competitiveness and wide use in the food manufacturing and hospitality sectors. Soyoil is largely imported from Argentina and Brazil, while sunflower oil shipments come from the Black Sea region.
Refiners turned cautious in March as global palm oil prices rose in tandem with crude oil and other vegetable oils, narrowing refining margins. Uncertainty over export policies in Indonesia, which occasionally restricts shipments to maintain domestic supply, also weighed on short-term demand.
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Source : Business World
