India’s palm oil imports set to rise from five-year low on competitive prices

India, the world’s largest buyer of palm oil, is expected to increase imports by nearly 20% in the new marketing year, which began on November 1. Competitive palm oil prices are driving demand, helping the tropical commodity regain market share.

According to Sanjeev Asthana, president of the Solvent Extractors’ Association of India (SEA) and CEO of Patanjali Foods Ltd, palm oil imports could rise to 9.3 million metric tons, up from 7.58 million tons last marketing year, which was the lowest in five years. Imports had previously fallen by 15.9% due to palm oil trading at a premium compared to soy oil.

Palm oil is currently trading at a discount of around $100 per ton relative to soy oil and over $200 per ton versus sunflower oil, prompting buyers to book shipments for the coming months. This is likely to reduce stocks in key producing countries such as Indonesia and Malaysia and support benchmark Malaysian palm oil futures.

Soy oil imports in the new season are expected to slightly exceed last year’s record 5.47 million tons, while sunflower oil purchases may fall to 2–2.5 million tons due to drought-related crop damage in the Black Sea region, which has driven up prices. Total edible oil imports in India for the new season are forecast at a record 16.5–17 million tons, compared with 16 million tons last year.

Additionally, the SEA has signed a memorandum of understanding with the Federation of Oils, Seeds and Fats Associations to strengthen knowledge exchange and prevent trade disputes during imports. The initiative aims to help India’s edible oil industry respond more effectively to market fluctuations and maintain supply stability.

Tags: prices, India, palm oil, imports