InfoSAWIT, MUMBAI – India's palm oil imports fell to their lowest level in 14 months in June 2026 as weak domestic demand and narrowing price discounts against rival edible oils weighed on purchases, potentially increasing palm oil inventories in Indonesia and Malaysia while putting downward pressure on global crude palm oil (CPO) prices.
According to The Economic Times, as reported by InfoSAWIT on Tuesday (July 7), five industry traders estimated that India's palm oil imports totaled only 492,000 metric tonnes in June, representing a 10.5% decline from the previous month and marking the lowest monthly volume since April 2025.
Imports of other edible oils also weakened during the month. Soybean oil imports were estimated to have fallen 23% month-on-month to 381,000 tonnes, while sunflower oil imports declined 17.5% to 244,000 tonnes, the lowest level in three months.
As a result, India's total edible oil imports are projected to have dropped 16.6% from May to approximately 1.1 million tonnes, excluding duty-free shipments entering the country overland through Nepal.
India is the world's largest importer of edible oils and the biggest export destination for palm oil from Indonesia and Malaysia. A sustained decline in Indian purchases could lead to higher inventories in producing countries and influence the direction of palm oil futures in the coming weeks.
Rajesh Patel, Managing Partner of GGN Research in Rajkot, Gujarat, said palm oil demand has remained sluggish in recent months as distributors have limited purchases while waiting for prices to ease further.
According to Patel, weaker buying has prompted refiners to reduce import volumes. Besides pricing concerns, demand has also been affected by cooking gas shortages, rising energy costs, and an extreme heatwave across India.
As one of the world's largest liquefied petroleum gas (LPG) importers, India has been facing supply constraints. The government has reduced gas allocations for industrial users while increasing commercial LPG prices to safeguard household supplies.
Palm oil has also become less attractive as its price discount against soybean oil has narrowed significantly. A Mumbai-based trader noted that the discount has fallen below US$50 per tonne, prompting many refiners to adopt a cautious purchasing strategy.
India sources most of its palm oil from Indonesia and Malaysia, while soybean oil and sunflower oil are primarily imported from Argentina, Brazil, Russia, and Ukraine.
Market participants are expected to closely monitor India's import trends over the coming weeks, as changes in demand from the world's largest edible oil buyer often have a significant impact on global palm oil prices and export prospects for major producing countries. (T2)
