InfoSAWIT, MUMBAI — India recorded a significant surge in palm oil imports during June 2025, reaching the highest level in nearly a year. This sharp increase was driven by favorable price differentials compared to competing vegetable oils such as soybean oil and sunflower oil, as well as the need to replenish dwindling domestic stocks.
According to a report from the Solvent Extractors’ Association (SEA) released on Monday (July 14, 2025), palm oil imports in Bollywood's nation surged by over 60% from the previous month, totaling 955,683 tons. This figure marks the highest since July 2024.
“With more competitive prices, palm oil has become the preferred choice for Indian importers, especially as domestic stocks have recently plummeted to a five-year low,” SEA stated in its announcement.
As the world's largest consumer and importer of vegetable oils, India's rising demand has the potential to reduce palm oil supplies in major producing countries such as Indonesia and Malaysia. The increase in demand is also contributing to upward pressure on palm oil futures prices on the Malaysian Exchange.
As reported by InfoSAWIT from Kontan, while palm oil experienced a surge, a different trend was observed in other vegetable oils. India's soybean oil imports fell by 9.8% to 359,504 tons, while sunflower oil imports rose by 17.8% to 216,141 tons.
Overall, vegetable oil stocks in India as of July 1, 2025, increased to 1.568 million tons, up from 1.33 million tons at the beginning of June—the first increase in seven months.
Vegetable oil market analyst Rajesh Patel from GGN Research predicts that the trend of high palm oil purchases will continue into July. “Palm oil prices remain significantly lower than soybean oil and sunflower oil, so we expect imports in July to stay above 900,000 tons,” Patel stated.
He also anticipates an increase in soybean oil imports this month, reaching around 450,000 tons, due to several vessels that were delayed in unloading at Kandla Port, Gujarat, last month, which are scheduled to be completed soon. (T2)
