India’s soybean and palm oil imports to rise 20% on lower prices

India’s palm oil imports will rise by nearly 20% in the new marketing year, thanks to competitive prices helping the tropical oil regain market share, Sanjeev Asthana, president of the Edible Oils Association of India (SEA), said last week.

“Palm oil prices have become competitive with other oils after the recent decline, and this will stimulate import demand,” Asthana told Reuters in an interview.

Increased purchases by the world’s largest buyer will likely lead to inventory drawdowns in key producing countries such as Indonesia and Malaysia.

The country’s palm oil imports in 2025/26 could rise to 9.3 million tonnes from last year’s 7.58 million tonnes, the lowest in five years and 15.9% lower than the previous season, as the tropical oil traded at a premium to soybean for much of the period.

However, palm oil is currently selling at a discount of around $100 per tonne compared to soybean oil and over $200 per tonne compared to sunflower oil, prompting processors to book supplies for the coming months.

Soybean oil imports in the new season are expected to slightly exceed last year’s record of 5.47 million tonnes, while sunflower oil purchases are expected to decline to 2-2.5 million tonnes, down from 2.9 million tonnes a year earlier, as crop damage in the Black Sea region has driven up prices.

Total edible oil imports into India in the new season are expected to reach a record 16.5-17 million tonnes, driven by rising consumption compared to 16 million tonnes last year.

It was previously reported that India’s imports of five key vegetable oils fell to 1.35 million tonnes in October 2025, a 9% decrease from October 2024, and from 1.67 million tonnes in September 2025. However, the country’s oil reserves are also declining, and analysts expect Indian buyers to step up their vegetable oil purchases in the coming months to ensure domestic market stability.

Tags: India, palm oil, imports, soybean oil