InfoSAWIT, MUMBAI – India increased its palm oil purchases in August 2026 as refiners moved to strengthen inventories ahead of the country’s festival season, pushing monthly palm oil imports up 7% to 782,761 tonnes.
The increase brought India’s palm oil imports to their highest level since February, according to data from the Solvent Extractors’ Association of India (SEA). The rise also coincided with a sharp increase in soybean oil purchases, lifting the country’s overall vegetable oil imports to an 11-month high.
Soybean oil imports posted an even stronger increase, climbing 26% from the previous month to a record 628,736 tonnes. Meanwhile, sunflower oil imports declined 36% to 160,639 tonnes.
Overall, India imported 1.57 million tonnes of vegetable oils in August, up 1.5% from the previous month. The increase was mainly driven by higher shipments of palm oil and soybean oil to the world’s largest vegetable oil-consuming market.
A Mumbai-based trader at a global trading company said refiners were increasing purchases to build stocks ahead of the festival season, which typically runs from August through November. During this period, edible oil demand tends to strengthen as household and food consumption increases.
Soybean oil could remain competitive in September. A New Delhi-based trader at a global trading company expects soybean oil shipments to remain above 600,000 tonnes this month, supported by relatively competitive prices compared with palm oil.
Supply disruptions affecting sunflower oil shipments from the Black Sea region have also encouraged Indian refiners to turn to soybean oil as an alternative source of supply. The shift adds another layer to the competition among major vegetable oils in the Indian market.
Strong Imports Put Pressure on Indian Port Capacity
India’s stronger vegetable oil imports have begun creating congestion at some major ports. Increased arrivals have reportedly resulted in vessel unloading delays of up to 10 days, as land-based storage capacity becomes increasingly constrained.
Refiners are attempting to clear existing inventories to make room for incoming cargoes, creating additional logistical pressure despite continued purchasing activity.
For the global vegetable oil market, stronger Indian buying could provide support to producers and exporters. Higher demand for palm oil and soybean oil may help Indonesia, Malaysia and Argentina manage available supplies while potentially supporting futures prices for palm oil and soybean oil.
India sources most of its palm oil from Indonesia and Malaysia, while soybean oil and sunflower oil supplies primarily come from Argentina, Brazil, Russia and Ukraine.
With the festival season continuing through November, India’s import activity is likely to remain an important factor for global vegetable oil markets, particularly as refiners balance inventory requirements, relative prices and the availability of competing oils. (T2)
