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India's palm oil imports surged 84% in May compared to April, reaching a six-month high of 592,888 metric tons due to lower inventories and attractive pricing against soyoil and sunflower oil. Total vegetable oil imports climbed 33% month-on-month to 1.19 million tons, the highest since December. Soyoil and sunflower oil imports also saw modest gains. The surge followed below-average imports in early 2024, reducing domestic stocks to their lowest level since July 2020. With palm oil maintaining a price edge and a recent import duty cut, analysts expect higher imports in June and continued strong demand in coming months.

Key Highlights

* Palm oil imports surged 84% in May to a six-month high.

* Total vegetable oil imports rose 33% to 1.19 million tons.

* Domestic oil stocks hit lowest levels since July 2020.

* Palm oil remains cheaper than soyoil and sunflower oil.

* Import duty cut expected to further boost demand ahead.

India’s palm oil imports witnessed a sharp 84% month-on-month surge in May, climbing to 592,888 metric tons — the highest level since November 2024. This rise comes on the back of declining domestic inventories and palm oil’s widening price discount compared to soyoil and sunflower oil, prompting refiners to ramp up purchases.

According to the Solvent Extractors' Association of India (SEA), total vegetable oil imports jumped 33% in May over April to 1.19 million tons. This significant growth was also supported by a 10.4% increase in soyoil imports (398,585 tons) and a 1.9% rise in sunflower oil imports (183,555 tons).

The rebound in imports follows four months of subdued buying, which had pushed India’s domestic vegetable oil stocks down to just 1.33 million tons as of June 1 — the lowest since July 2020. With palm oil trading at a significant discount to its rivals, demand is expected to remain firm.

Rajesh Patel of GGN Research noted that palm oil imports in June could touch 850,000 tons, with soyoil staying steady near 400,000 tons. India primarily sources palm oil from Indonesia and Malaysia, while soyoil and sunflower oil are imported from Argentina, Brazil, Russia, and Ukraine.

In a bid to ease inflation and support domestic refiners, the Indian government recently slashed the basic import duty on crude edible oils to 10%. This policy move is likely to sustain import momentum in the coming months.

Finally

India's edible oil demand is on a strong recovery path, supported by lower duties, favorable global prices, and restocking needs, signaling bullish prospects for palm oil imports.

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