InfoSAWIT, JAKARTA – India's vegetable oil imports are expected to increase significantly between July and October 2026, driven by tightening domestic supplies as soybean and rapeseed crushing slows. The anticipated surge in imports is likely to strengthen global demand for palm oil and soybean oil while providing additional support for international edible oil prices.
According to Reuters, industry participants expect India's vegetable oil imports to average 1.5 million tonnes per month during the four-month period, up from an average of 1.3 million tonnes recorded during the first eight months of the 2025/2026 marketing year ending in October.
B.V. Mehta, Executive Director of the Solvent Extractors' Association of India (SEA), said domestic oilseed supplies from the previous harvest have nearly been exhausted, resulting in slower soybean and rapeseed crushing activity and lower domestic edible oil production.
"As crushing activity slows due to limited availability of last season's oilseeds, imports will need to increase over the coming months to meet domestic demand," Mehta said.
As the world's largest vegetable oil importer, India's stronger buying activity is expected to reduce palm oil and soybean oil inventories in major exporting countries, including Indonesia, Malaysia, Argentina, and Brazil. The tighter supply outlook could lend additional support to Malaysian palm oil futures as well as global soybean oil prices.
Mehta projected India's total vegetable oil imports for the current marketing year to reach approximately 16.3 million tonnes, slightly higher than the 16 million tonnes imported during the previous season.
For more than two decades, India has relied heavily on imports to meet nearly two-thirds of its vegetable oil consumption, as domestic oilseed production has struggled to keep pace with rising demand.
Meanwhile, Sandeep Bajoria, Chief Executive Officer of Sunvin Group, said Indian refiners have already begun increasing purchases of palm oil and soybean oil for delivery over the coming months in preparation for the country's festive season.
Demand for edible oils typically accelerates between August and November, prompting importers to build inventories ahead of peak consumption.
Indonesia and Malaysia continue to dominate India's palm oil supply, while soybean oil and sunflower oil are mainly sourced from Argentina, Brazil, Russia, and Ukraine. However, traders noted that Indian buyers have recently diversified their sourcing strategy, importing additional soybean oil from China and Türkiye while expanding purchases from South America and Africa.
According to Rajesh Patel, Managing Partner of GGN Research, India's palm oil imports could surge 54% month-on-month in July to around 750,000 tonnes, marking the highest monthly volume in five months.
The expected increase in Indian demand is viewed as a positive development for the global palm oil market, particularly for Indonesia and Malaysia, as stronger imports could help absorb export supplies and provide continued support for international CPO prices. (T2)
Source: Reuters
