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India’s palm oil imports jumped 51% in January to a four-month high of 766,384 tons, driven by a wider price discount compared to soyoil. The surge comes as refiners increased palm oil purchases while sharply cutting soyoil and sunflower oil imports. Soyoil imports fell over 44% to a 19-month low, while sunflower oil imports declined nearly 24%. Despite the strong rise in palm oil buying, total edible oil imports slipped 3.7% to 1.31 million tons. Vegetable oil stocks also declined year-on-year, reflecting tighter supplies. Palm oil imports are expected to cross 800,000 tons in February.

Key Highlights

• Palm oil imports rise 51% to 766,384 tons in January.
• Soyoil imports drop 44% to a 19-month low.
• Sunflower oil imports fall nearly 24% month-on-month.
• Total edible oil imports decline 3.7% to 1.31 million tons.
• Palm oil imports likely to exceed 800,000 tons in February.

India’s edible oil trade saw a sharp shift in January, with palm oil imports surging 51% month-on-month to 766,384 metric tons, marking the highest level since September 2025. The increase was primarily driven by a wider price discount to rival soyoil, prompting refiners to step up purchases of the tropical oil.

According to the Solvent Extractors' Association of India (SEA), the strong recovery in palm oil imports contrasts sharply with declines in other vegetable oils. Soyoil imports fell more than 44% to 278,888 tons, the lowest level since June 2024, while sunflower oil imports dropped 23.8% to 266,575 tons. The shift highlights refiners’ sensitivity to global price differentials amid volatile international edible oil markets.

Despite the sharp rise in palm oil buying, India’s total edible oil imports slipped 3.7% from December to 1.31 million tons, as the decline in soyoil and sunflower oil more than offset gains in palm oil. Meanwhile, domestic vegetable oil inventories tightened. Stocks stood at 1.75 million tons as of February 1, significantly lower than 2.18 million tons a year earlier, reflecting subdued imports in previous months.

Market participants expect the trend to continue. Palm oil imports are projected to exceed 800,000 tons in February as Indian buyers increasingly switch from relatively expensive sunflower oil to more competitively priced palm oil.

With price competitiveness driving buying decisions, palm oil is regaining market share, while overall edible oil imports remain influenced by global supply trends and domestic inventory dynamics.

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