Indian vegetable oil buyers reduce purchases, expecting prices to ease after Iran war

In India, purchases of palm, soybean, and sunflower oil are declining as importers anticipate that the Iran war-driven price rally will not last and plan to replenish stocks once the conflict ends, industry sources told Reuters.

Lower imports from India, the world’s largest vegetable oil buyer, could limit gains in Malaysian palm oil and U.S. soybean oil prices, while supporting domestic prices and oilseed producers.

Earlier in March, palm oil prices reached their highest level in over a year due to expectations that rising crude oil prices from the Middle East conflict would boost demand for biodiesel feedstock. A senior official from a leading importing company said, “There’s no need to panic-buy. Global stocks are sufficient, and prices will drop sharply once the war ends.”

In 2025, India met nearly two-thirds of its vegetable oil needs through imports, averaging 1.36 million tonnes per month. Forecasts indicate that imports in March will fall to around 1.1 million tonnes, with palm oil shipments at about 680,000 tonnes, down from 847,689 tonnes in February.

Stock levels and a record rapeseed harvest in India help offset lower imports, while palm oil supplies come mainly from Indonesia and Malaysia, and soybean and sunflower oil imports are sourced from Argentina, Brazil, Ukraine and Russia.

Tags: India, palm oil, imports, sunflower oil, soybean oil, prices