India`s Palm Oil Imports Hit 5-Year Low as Soyoil Surges by Amit Gupta, Kedia Advisory
India’s palm oil imports fell to a five-year low of 7.58 million tonnes in the 2024/25 marketing year, down 15.9% from the previous year, as refiners shifted to cheaper alternatives amid a widening price premium, according to the Solvent Extractors’ Association (SEA). In contrast, soyoil imports jumped 59% to a record 5.47 million tonnes, while sunflower oil imports declined 16.3% to 2.9 million tonnes. Palm oil’s share in India’s total edible oil imports dropped to 47%, while soyoil and sunflower oil’s combined share rose to 53%. India spent a record Rs.1.61 trillion on vegetable oil imports in 2024/25.
Key Highlights
* Palm oil imports fell 15.9% to 7.58 million tonnes, a 5-year low.
* Soyoil imports surged 59% to an all-time high of 5.47 million tonnes.
* Sunflower oil imports dropped 16.3% to 2.9 million tonnes.
* Palm oil’s share in total imports fell to 47% from 56%.
* India spent a record Rs.1.61 trillion on vegetable oil imports.
India’s palm oil imports declined sharply in the 2024/25 marketing year, hitting their lowest level in five years as refiners favored soyoil due to changing price dynamics. According to the Solvent Extractors’ Association of India (SEA), palm oil imports fell 15.9% year-on-year to 7.58 million tonnes, the weakest since 2019/20.
The drop comes as palm oil—traditionally India’s most imported edible oil—became less competitive, trading at a premium to soyoil for most of the year. “Refiners shifted to soyoil as palm oil prices lost their cost advantage,” said B.V. Mehta, Executive Director of SEA.
In contrast, soyoil imports surged 59% to a record 5.47 million tonnes, while sunflower oil purchases slipped 16.3% to 2.9 million tonnes. India’s total vegetable oil imports for the year rose marginally to 16.36 million tonnes, up from 16.23 million tonnes last year.
Palm oil’s share in the import basket fell to a record low of 47%, down from 56% a year earlier, while the combined share of soyoil and sunflower oil climbed to 53%. India primarily sources palm oil from Indonesia and Malaysia, while soyoil and sunflower oil come mainly from Argentina, Brazil, Russia, and Ukraine.
India’s refined vegetable oil imports from Nepal rose sharply to a record 746,400 tonnes, benefiting from duty-free access under a regional trade pact. The SEA also reported that India spent a record Rs.1.61 trillion on vegetable oil imports in 2024/25, compared with Rs.1.32 trillion last year.
In October, palm oil imports fell 27.7% month-on-month to 602,381 tonnes, while total edible oil imports declined 20% to 1.33 million tonnes, as refiners reduced purchases after the festive season.
Finally, India’s edible oil trade saw a major shift in 2024/25, with soaring soyoil imports replacing palm oil dominance amid changing price trends and higher import spending.
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