India cuts palm oil imports as it switches to rival edible oils

India sharply reduced its palm oil imports in April 2026, shifting demand toward soyoil and sunflower oil. The move was driven by a rally in palm oil prices that narrowed its traditional price advantage, along with weaker demand from the foodservice sector.

According to trade estimates, India imported around 505,000 tonnes of palm oil in April, down 27% from March and the lowest level since April 2025. Despite the drop, refiners did not cut overall purchases but instead adjusted their import mix in favor of more competitive alternatives.

Soyoil imports increased by about 24% to 355,000 tonnes, while sunflower oil imports more than doubled to roughly 435,000 tonnes. As a result, total edible oil imports rose to approximately 1.3 million tonnes, up 10% month-on-month.

Energy market pressures also played a role. A shortage and higher cost of commercial cooking gas led some restaurants to scale back deep-frying, reducing palm oil consumption. At the same time, some buyers accelerated sunflower oil purchases amid concerns over potential shipping disruptions linked to geopolitical tensions.

Analysts note that even small price shifts can quickly alter demand patterns in a major market like India. If the trend continues, it could lead to higher inventories in key palm oil suppliers such as Indonesia and Malaysia, putting downward pressure on global prices.

Tags: India, palm oil, imports