India’s palm oil demand rises after 5 months of weak activity

India has seen a surge in palm oil demand in April after five months of weak activity, driven by lower prices and favourable import margins compared to soybean oil.

The decline in palm oil is attributed to increased production and inventories in Malaysia, as well as recent market uncertainty caused by concerns about US tariffs, which led to a price drop in April. Palm oil is now trading below soybean oil by an average of $50 per tonne (reversing a trend from March 2025, when soybean oil was cheaper by $70-100 per tonne), and import margins for palm oil have turned positive, while those for products such as olein, sunflower oil and soybean oil remain negative, according to S&P Global Platts.

India’s palm oil imports in March increased by 13.7% compared to February, amounting to 424.6 thousand tons, but still 38% less than in March 2024.

The palm oil contract has fallen by 12% during this year. According to OleoScope, on 24.04.2025, the price of palm oil (FOB Malaysia) for delivery in April amounted to $995.00 / t, which is $4.98 / t lower than the previous value of 23.04.2025 ($999.98 / t). By September of this year, an increase in global palm oil exports is projected to 25 million tons.

Tags: India, palm oil