India Palm Oil Imports Surge to Six-Month High by Amit Gupta, Kedia Advisory
India’s palm oil imports rose sharply in February, reaching a six-month high as competitive pricing encouraged refiners to increase purchases. A wider discount compared with competing edible oils prompted buyers to switch from sunflower oil to palm oil, supporting import volumes. Palm oil shipments climbed 11% month-on-month, while soyoil imports also registered moderate growth. In contrast, sunflower oil imports declined significantly due to weaker demand and supply concerns linked to geopolitical disruptions. Despite higher palm and soyoil purchases, India’s overall vegetable oil imports edged lower because of the sharp drop in sunflower oil inflows. Rising freight costs and geopolitical risks are also influencing buying strategies in the market.
Key Highlights
* India’s palm oil imports jumped 11% in February to a six-month high of 847,689 tonnes.
* Competitive pricing versus rival oils encouraged refiners to increase palm oil purchases.
* Soyoil imports rose 7%, while sunflower oil imports plunged nearly 45%.
* Total vegetable oil imports declined 2% to 1.32 million tonnes in February.
* Geopolitical tensions and higher freight costs are influencing India’s edible oil buying patterns.
India’s palm oil imports climbed to a six-month high in February as attractive pricing encouraged refiners to increase purchases of the tropical oil. Imports rose by 11% month-on-month to 847,689 tonnes, the highest level since August 2025, according to data released by the Solvent Extractors’ Association of India (SEA). The increase came after palm oil traded at a steep discount compared with competing edible oils, making it a preferred choice for domestic refiners.
The wider price gap between palm oil and soyoil played a major role in boosting demand. At one point, palm oil was available at a discount of nearly $100 per tonne compared with soyoil, prompting buyers to step up purchases and substitute palm oil for other edible oils. However, the price advantage has recently narrowed to around $20 per tonne, which could moderate imports in the coming months. Market participants estimate that India’s palm oil imports in March could ease slightly to around 800,000 tonnes.
Imports of other vegetable oils showed mixed trends during the month. Soyoil imports increased by 7% to 299,046 tonnes, recovering from the previous month’s 19-month low. In contrast, sunflower oil imports dropped sharply by nearly 45% to 145,308 tonnes, reflecting weaker demand and supply uncertainties. As a result, India’s total vegetable oil imports declined by about 2% in February to 1.32 million tonnes.
India sources most of its palm oil from Indonesia and Malaysia, while soyoil and sunflower oil shipments primarily arrive from Argentina, Brazil, Russia, and Ukraine. Rising global vegetable oil prices and higher freight rates are also influencing buying strategies, with many Indian buyers preferring prompt shipments.
Geopolitical tensions are adding another layer of uncertainty to the market. India has traditionally relied heavily on Russia and Ukraine for sunflower oil supplies, but the ongoing conflict and potential disruptions around the Red Sea and Suez Canal could increase logistics costs and tighten supply chains in the months ahead.
Finally, India’s palm oil imports surged on attractive pricing, but narrowing discounts and geopolitical risks may reshape future buying patterns while continuing to influence the broader global vegetable oil market.
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