InfoSAWIT, NEW DELHI — India's vegetable oil imports surged sharply by 51% to 1.639 million tons in September 2025, compared to 1.087 million tons in the same period last year. This increase was mainly driven by soaring shipments of crude palm oil (CPO), while processed oil imports dropped to zero for the first time since 2021.

The data was presented by the Solvent Extractors Association of India (SEA), which stated that the surge occurred after the Indian government widened the import duty differential between CPO and processed palm oil like RBD Palmolein from 8.25% to 19.25%, effective from May 31, 2025.

This policy made processed oil imports uneconomical and encouraged the domestic industry to increase refining capacity for crude oil domestically.

"The government's decision to widen the import duty differential is a bold and timely move," SEA said in a statement quoted by InfoSAWIT from India Times, Wednesday (22/10/2025). "This policy has successfully suppressed processed palm oil imports and revived the domestic refining sector."

According to SEA data, there were no RBD Palmolein imports in September 2025, down drastically from 84,279 tons in the same period the previous year. Meanwhile, total vegetable oil imports consisted of 1.604 million tons of edible oils and 35,100 tons of non-edible oils.

By type, CPO imports nearly doubled to 824,000 tons compared to 432,000 tons in September 2024. Crude sunflower oil imports rose to 272,000 tons from 152,000 tons, while crude soybean oil increased to 503,000 tons from 384,000 tons. Conversely, Crude Palm Kernel Oil (CPKO) imports decreased to 4,255 tons from 10,525 tons.

SEA also reported that edible oil stocks at various ports reached 2 million tons as of October 1, 2025, up from the previous month due to the strong flow of imports over the past four months.

For information, India is the world's largest importer of vegetable oils. The country sources palm oil from Indonesia and Malaysia, soybean oil from Argentina, Brazil, and Russia, and sunflower oil from Russia and Ukraine.

The Indian government's latest policy is seen as a strategic effort to strengthen the domestic oil processing industry, reduce dependence on imported processed products, and stabilize edible oil supply amid global price fluctuations. (T2)