InfoSAWIT, MUMBAI — India is expected to increase its palm oil imports by nearly 20% in the new 2025/2026 marketing year, driven by increasingly competitive prices that are helping the tropical vegetable oil reclaim market share. The projection was delivered by the President of the Solvent Extractors' Association of India (SEA), Sanjeev Asthana, on Thursday (21/11).
The rise in purchases by the world’s largest edible oil consumer could reduce stock levels in major producing countries such as Indonesia and Malaysia, while also providing momentum for Malaysian CPO futures.
“After palm oil prices corrected, they became far more competitive compared to other vegetable oils. This is what will push import demand higher,” Asthana told Reuters, as quoted by InfoSAWIT, Monday (24/11/2025).
Imports Rebound After Five-Year Low
Asthana estimates that India’s palm oil imports for the 2025/2026 marketing year, which began on November 1, could reach 9.3 million tons — significantly higher than last year’s 7.58 million tons, the lowest level in five years.
During the 2024/2025 period, palm oil imports dropped 15.9% because palm prices had been at a premium over soyoil.
The situation has now reversed: palm oil is trading at a discount of about US$100 per ton to soyoil and more than US$200 cheaper than sunflower oil. This has encouraged Indian refiners to secure shipments for the coming months.
Meanwhile, soyoil imports are forecast to slightly surpass last year’s record of 5.47 million tons. Sunflower oil imports, however, are projected to decline to around 2–2.5 million tons from 2.9 million tons, following price increases due to crop damage in the Black Sea region.
Overall, India’s total vegetable oil imports are expected to hit a record 16.5–17 million tons in the new season, supported by rising domestic consumption. Last year’s imports reached 16 million tons.
SEA also signed a memorandum of understanding with the Federation of Oils, Seeds and Fats Associations last Wednesday to strengthen industry knowledge exchange and reduce trade dispute risks. (T2)
