PALMOILMAGAZINE, MUMBAI – India’s palm oil imports surged 51% month-on-month in January 2026, reaching their highest level in four months, as a widening price gap with soybean oil encouraged refiners to ramp up purchases of the tropical oil.
Data from the Solvent Extractors’ Association of India (SEA) showed that India imported 766,384 metric tons of palm oil in January, the highest volume since September 2025.
In contrast, soybean oil imports plunged more than 44% to 278,888 tons — the lowest level since June 2024. Sunflower oil imports also declined 23.8% to 266,575 tons.
Also Read: Shifting Focus to Africa: A New Chapter for Global Palm Oil
India’s total vegetable oil imports in January stood at 1.31 million tons, down 3.7% from the previous month, mainly due to weaker purchases of soybean and sunflower oils.
Traders in Mumbai noted that palm oil is currently trading at a discount of more than US$100 per ton compared to soyoil, making it significantly more attractive to Indian refiners.
According to Reuters, the trend is expected to continue in February, with palm oil imports projected to exceed 800,000 tons as buyers shift away from higher-priced sunflower oil toward more competitively priced palm oil.
Implications for Global Markets
As the world’s largest vegetable oil importer, India plays a pivotal role in shaping global trade flows. The rebound in palm oil purchases could help reduce inventories in major producing countries such as Indonesia and Malaysia, potentially supporting Malaysian palm oil futures prices.
On the other hand, weaker Indian demand for soyoil may weigh on U.S. soybean oil futures.
SEA also reported that India’s vegetable oil stocks as of February 1 fell to 1.75 million tons, compared to 2.18 million tons a year earlier. The lower stock levels reflect reduced imports in recent months prior to January’s rebound.
Also Read: DEN Highlights B50 as Strategic Leap Toward Energy Independence
India primarily sources palm oil from Indonesia and Malaysia, while soybean and sunflower oils are imported from Argentina, Brazil, Russia, and Ukraine.
The shift in India’s import pattern highlights the market’s strong sensitivity to global price dynamics — and underscores the country’s strategic influence in steering the direction of the global vegetable oil trade. (P2)
