India’s palm oil imports have faced a decrease because of some admin fluctuations. Certain contracts were cancelled, and competition is not stopping. To feed its expanding population, India’s extensive and diverse food industry mainly depends on imported edible oils. These oils serve as the foundation for innumerable recipes in both small-town homes and the kitchens of busy cities. However, the proportion of goods that India purchases from the international market is shifting. Farmers, food firms, and policymakers are all taking notice of the obvious change in the nation’s import patterns.
As soyoil shipments reach a three-year high, India’s purchases of palm oil decline
India’s palm oil imports fell in July because of cancellations in import contracts, while soyoil shipments surged to a 3-year high due to competitive prices and the delivery of delayed shipments from June, according to five dealers. Lower palm oil imports by India, the world’s biggest buyer of vegetable oils, could lead to a stock buildup in top producers Indonesia and Malaysia and weigh on benchmark Malaysian palm oil futures FCPOc3.
In July, palm oil imports declined by 10% to 858,000 metric tons, down from June’s 11-month high, according to estimates from dealers. Soyoil imports in July surged 38% month-on-month to 495,000 tons, the highest level in three years. The increase was a result of vessels finally discharging their cargo in July after being delayed by congestion at Gujarat’s Kandla port in June, they said.
India’s edible oil imports are at their highest level since November due to festive demand
Sunflower oil imports fell 7% to 201,000 tonnes, dealers estimated. Higher imports of soyoil lifted India’s total edible oil imports in July by 1.5% to 1.53 million tonnes from a month earlier, the highest level since November, according to dealers’ estimates. The import numbers exclude duty-free shipments that arrived via land borders from Nepal, they said.
After buying less edible oil than usual in the first half of 2025, India is now increasing imports to meet rising demand ahead of the upcoming festive season, said Aashish Acharya, vice president at Patanjali Foods Ltd PAFO.NS, a leading importer of edible oils. In India, edible oil demand, particularly for palm oil, typically rises during the festival season due to increased consumption of sweets and fried foods.
Reasons for the Change in India’s Preferences for Edible Oils
- Due to export limitations and decreased production in producing nations, palm oil prices have increased.
- In urban areas, middle-class consumers are drawn to soy oil since it is frequently promoted as a healthier option.
- While the supply of palm oil has had interruptions, South American exporters have been reliable in satisfying Indian demand.
According to industry analysts, the combination of these variables is causing a long-term change in the edible oil mix in India. However, because palm oil is less expensive than alternatives, demand for it is still high in rural areas, making the reduction more apparent in urban and industrial areas. Even in the coming months, imports will remain robust. Either way, general global markets have dropped after Trump’s latest tariff move.
India buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine. Nepal’s edible oil imports were 83,000 tonnes in July, up from 75,000 tonnes in June, GGN Research estimated. Furthermore, we can see how imports and exports are affecting nations such as South Africa; it has even gone to the extent of aiding exporters hurt by Trump tariffs. Which oil will be dominant in the years to come is just as important as which one will be dominant today; that is the burning question we have today.
GCN.com/Reuters.