India’s vegetable oil imports reach highest level in over two years

India increased its vegetable oil imports by 13% month-on-month in October 2026 to 1.74 mln tons, the highest monthly level in more than two years. According to preliminary estimates from market participants, the increase was driven by higher shipments of palm, soybean and sunflower oils. The main factors were lower global prices, stock replenishment by refiners and preparations for a seasonal increase in demand ahead of the festive season.

Palm oil imports rose by 6% from September to 866 thsd tons in October, reaching their highest level since August 2025. Meanwhile, soybean oil purchases also increased by 6% to a record 653 thsd tons. Sunflower oil imports doubled from September to 223 thsd tons. In the previous month, sunflower oil imports had fallen to their lowest level in more than four years.

The increase in imports is linked to seasonally stronger vegetable oil consumption in India during September–November, when households and food manufacturers step up production of sweets, snacks and fried foods. Demand has received additional support this year from concerns over limited domestic oilseed supplies following unfavorable weather conditions associated with El Niño. Market participants expect consumption to remain high in November during the Diwali festival.

Another factor supporting imports was the Indian government’s decision in September to reduce basic import duties on crude and refined vegetable oils, including palm, soybean and sunflower oils. The measure was aimed at lowering prices during the peak seasonal demand period. According to market participants, palm oil imports could remain elevated in November, as the commodity continues to trade at a discount to competing vegetable oils.

Higher purchases by India, the world’s largest vegetable oil importer, could support international prices and limit stock accumulation in major palm oil-producing countries, Indonesia and Malaysia. Argentina, Brazil, Russia and Ukraine remain the main suppliers of soybean and sunflower oils to the Indian market. However, the reported figures are preliminary estimates from traders, while official October import data from the Solvent Extractors’ Association of India (SEA) are expected in mid-November.

Tags: vegetable oils, India, edible oils