InfoSAWIT, MUMBAI — India's palm oil imports experienced a remarkable surge in June 2025, soaring over 60% compared to the previous month, reaching a total of 955,683 metric tons. This figure marks the highest level since July 2024, as reported by the Solvent Extractors’ Association of India (SEA) on Monday, July 14, 2025.
The spike in imports is attributed to the lower prices of palm oil compared to soybean oil and sunflower oil, alongside the need to replenish depleted vegetable oil stocks. As the world's largest vegetable oil buyer, India's increased imports are expected to reduce stocks in major producing countries like Indonesia and Malaysia, while also providing a boost to palm oil futures prices on the Malaysian exchange.
Shifts in Vegetable Oil Import Trends
While palm oil imports surged, soybean oil imports fell by 9.8% to 359,504 tons, and sunflower oil imports rose by 17.8% to 216,141 tons. SEA also noted that India's domestic vegetable oil stocks increased for the first time in seven months, reaching 1.568 million tons as of July 1, up from the previous month's low of 1.33 million tons—the lowest level in five years.
Rajesh Patel, Managing Partner at GGN Research, indicated that the trend of high palm oil imports is likely to continue into July. “The competitive pricing of palm oil compared to other vegetable oils keeps demand high. We expect palm oil imports to remain above 900,000 tons this month,” he stated, as reported by InfoSAWIT from Business Recorder on Tuesday, July 15, 2025.
Patel also projected that soybean oil imports would rise to around 450,000 tons in July, driven by delays in unloading several vessels at the Kandla port in Gujarat, which are expected to complete their unloading process this month. India primarily imports palm oil from Indonesia and Malaysia, while soybean and sunflower oils come from Argentina, Brazil, Russia, and Ukraine.
To curb inflation and support the domestic refining industry, the Indian government reduced the basic import tariff for crude vegetable oils to just 10% in May. This policy has further stimulated interest in imports among cooking oil industry players in the country. (T2)
