1 Jul 2025
India's palm oil imports soared to a six-month high in May 2025, driven by declining domestic stock levels and the competitive pricing of tropical oils compared to rival oils such as soyoil and sunflower oil. The Solvent Extractors’ Association of India (SEA) reported that palm oil imports rose sharply by 84% month-on-month, reaching 592,888 tonnes — the highest volume since November 2024.
During the marketing year that ended in October 2024, India averaged monthly palm oil imports of over 750,000 tonnes. The recent rebound in May reflects renewed buying interest by refiners, who took advantage of palm oil’s lower price relative to other edible oils.
Soyoil imports also witnessed a notable increase of 10.4%, reaching 398,585 tonnes — the highest level since January. Sunflower oil imports edged up slightly by 1.9% to 183,555 tonnes. Together, these increases pushed India’s total vegetable oil imports for May to 1.19 million tonnes, marking a 33% rise from the previous month and the highest level recorded since December 2024.
The surge comes after subdued imports between January and April led to a significant decline in domestic stockpiles. As of June 1, India’s vegetable oil stocks had fallen to 1.33 million tonnes — the lowest level since July 2020, according to SEA data.
Looking ahead, palm oil imports are projected to rise further in June, potentially reaching around 850,000 tonnes, as the commodity continues to trade at a discount compared to soyoil. Soyoil imports are expected to remain stable at approximately 400,000 tonnes.
As the world’s largest consumer of vegetable oils, India’s increased demand is likely to impact global markets, potentially supporting Malaysian palm oil prices and U.S. soyoil futures.
India sources the bulk of its palm oil from Indonesia and Malaysia, while soyoil and sunflower oil are primarily imported from Argentina, Brazil, Russia, and Ukraine.