PALMOILMAGAZINE, MUMBAI – India’s vegetable oil market is undergoing a major shift. For the first time, annual palm oil imports are expected to fall below those of soft oils like soybean oil and sunflower oil. This trend is driven by rising palm oil prices, prompting Indian oil processors to switch to more affordable alternatives.
Sanjeev Asthana, President of the Solvent Extractors’ Association (SEA) of India, stated that supply disruptions have led to higher palm oil prices, making it less competitive than other vegetable oils. “Palm oil has become more expensive due to supply issues, leading buyers to turn to soybean and sunflower oil,” he said, as reported by Palmoilmagazine.com via Reuters on Tuesday (25/2/2025).
According to Asthana, India’s palm oil imports in the 2024/2025 marketing year (ending October 2025) could drop to 7.5 million metric tons, the lowest level in five years. Meanwhile, soft oils are expected to overtake palm oil’s dominance in India’s total vegetable oil imports.
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SEA data shows that in the previous marketing year, palm oil accounted for 56% of India’s total vegetable oil imports. However, in the first three months of this year, its share shrank to 43%. This decline is mainly due to persistently high palm oil prices, influenced by extreme weather in Indonesia and Malaysia and Indonesia’s biodiesel policies, which have increased domestic palm oil consumption.
“Current palm oil prices are too high and unsustainable. However, if prices become more competitive in the next two months, India’s imports may rise again,” Asthana noted.
India primarily imports palm oil from Indonesia, Malaysia, and Thailand, while soybean and sunflower oils are sourced from Argentina, Brazil, Russia, and Ukraine.
Asthana estimates that soybean oil imports could increase by 1 million to 1.5 million tons from last year’s 3.4 million tons. Sunflower oil imports are also expected to rise slightly from last year’s record of 3.5 million tons.
Despite this shift in import composition, India’s total vegetable oil imports are projected to remain stable at around 16 million tons, supported by rising domestic production. This trend marks a new chapter in India’s vegetable oil market dynamics amid global challenges. (P2)
