India’s vegetable oil demand is slowing due to rising prices

India, one of the world’s largest food importers, is reporting abnormally low growth rates in vegetable oil consumption in the 2025/26 season. According to a recent report from Oil World (Germany), the main reason is high global prices, which are forcing the country’s food sector to go into conservation mode.

While the average annual increase in oil consumption in India was 1.1 million tonnes in the previous four seasons, this figure is projected to be only 0.2–0.3 million tonnes in the 2025/26 season.

Since the start of the season (October 2025–March 2026), domestic consumption is estimated at 12.66 million tonnes, distributed as follows:

• Palm oil – 4.53 million tonnes;
• Soybean oil – 3.41 million tonnes;
• Rapeseed oil – 2.06 million tonnes;
• Sunflower oil – 1.48 million tonnes.

Indian importers are facing limited soybean oil supplies on the global market. This is due to growing domestic demand for biodiesel in the United States and Brazil. Soybean oil exports are expected to improve only when processing of the new crop picks up speed in Argentina. Supplies of palm and sunflower oils may also increase in the coming months.

According to forecasts, India will purchase approximately 9.05 million tonnes of vegetable oils from foreign markets between April and September 2026. The expected import breakdown is:

• Palm oil – 4.63 million tonnes;
• Soybean oil – 2.79 million tonnes;
• Sunflower oil – 1.55 million tonnes.

The situation on the Indian market remains an indicator for global exporters: high prices have already begun to erode demand, and further trends will depend on the harvest in South America and oil prices, experts note.

Tags: India, imports, edible oils