InfoSAWIT, NEW DELHI – India's vegetable oil imports climbed in May 2026, driven by a sharp increase in crude soybean oil purchases as narrowing price differentials made soybean oil more competitive against palm oil.

According to the latest data released by the Solvent Extractors' Association of India (SEA), the country's total vegetable oil imports reached 1.365 million tonnes in May 2026, representing an 8% increase from 1.267 million tonnes recorded during the same period last year.

The growth was largely attributed to higher imports of edible oils, which rose by 6.7% year-on-year to 1.339 million tonnes, compared with 1.255 million tonnes in May 2025.

The most notable increase occurred in crude soybean oil imports, which surged to 493,854 tonnes, up from 398,585 tonnes a year earlier.

SEA said the rise reflected the narrowing premium between soybean oil and palm oil, enhancing soybean oil's competitiveness in the Indian market.

"Edible oil imports increased in May primarily due to higher crude soybean oil imports, as the price premium of soybean oil over palm oil narrowed," SEA stated in a report cited by InfoSAWIT from Indiatimes on Sunday (14/6/2026).

Imports of non-edible oils also recorded a significant increase, more than doubling to 26,202 tonnes from 12,040 tonnes in May 2025.

Seven-Month Imports Reach 9.37 Million Tonnes

During the first seven months of India's 2025/2026 oil marketing year (November 2025–May 2026), total vegetable oil imports reached 9.365 million tonnes, up 12% from 8.339 million tonnes during the same period a year earlier.

Edible oil imports rose 13% to 9.217 million tonnes, while non-edible oil imports declined to 147,710 tonnes, compared with 207,505 tonnes previously.

Tariff Policies Encourage Crude Palm Oil Imports

SEA also highlighted India's revised tariff values, effective from 1 June 2026, which increased the tariff value for crude palm oil (CPO) to US$1,218 per tonne and RBD palm oil to US$1,222 per tonne. Meanwhile, tariff values for crude soybean oil were slightly reduced.

According to SEA, the policy maintains a higher import duty differential between crude and refined palm oil, encouraging imports of raw materials for domestic refining.

"No imports of RBD Palmolein were recorded in May 2026. Cumulatively, RBD Palmolein imports between November 2025 and May 2026 dropped sharply to 47,270 tonnes from 826,800 tonnes in the same period last year," SEA noted.

The association believes the decline in refined palm oil imports reflects the success of government policies aimed at supporting domestic refining industries, creating added value, and generating employment opportunities.

India's changing import patterns are expected to continue influencing global vegetable oil trade dynamics, including export prospects for leading palm oil producers such as Indonesia and Malaysia. (T2)