InfoSAWIT, MUMBAI – India’s palm oil imports fell sharply by 26% in April 2026, hitting their lowest level in four months as weak demand from the food industry and higher palm oil prices reduced its competitiveness against rival vegetable oils.

According to Reuters, as published online by InfoSAWIT from Brecorder on Monday (18/5/2026), the Solvent Extractors’ Association of India reported that the country’s palm oil imports dropped to 513,403 metric tons in April, compared with 689,462 tons in March. The figure marked the lowest monthly import volume since December 2025.

The decline in purchases by the world’s largest vegetable oil buyer is expected to increase palm oil inventories in major producing countries such as Indonesia and Malaysia, while also putting pressure on Malaysian crude palm oil (CPO) futures prices.

In contrast, India’s soybean oil imports rose 25% to 360,350 tons, the highest level in four months. Sunflower oil imports surged around 121% to 434,240 tons, reaching their highest level in 22 months.

Overall, India’s total vegetable oil imports climbed 10% to 1.31 million tons, supported by stronger purchases of soybean and sunflower oils.

India mainly imports palm oil from Indonesia and Malaysia, while soybean and sunflower oils are largely sourced from Argentina, Brazil, Russia, and Ukraine.

A Mumbai-based trader from a global trading company said many refiners were still waiting for palm oil prices to correct before making large-scale purchases. Processing margins remain negative, prompting buyers to delay imports.

Beyond pricing concerns, India’s palm oil consumption has also been affected by an ongoing cooking gas crisis. The shortage has particularly impacted restaurants and food outlets, which are among the largest users of palm oil for deep-frying.

Popular Indian foods such as samosas and chole bhature rely heavily on deep-frying methods that consume significant amounts of cooking oil.

India, the world’s second-largest importer of cooking gas, is currently facing its worst gas shortage in decades. The government has reportedly cut gas supplies to industrial users and increased commercial LPG cylinder prices to secure household supplies. (T2)