PALMOILMAGAZINE, JAKARTA – India’s vegetable oil imports are expected to increase sharply between July and October 2026 as domestic supplies tighten due to slower soybean and rapeseed processing. The anticipated surge in imports is likely to boost international demand for palm oil and soybean oil, providing additional support for global vegetable oil and crude palm oil (CPO) prices.
According to a Reuters report cited by PalmOilMagazine.com, industry analysts expect India’s vegetable oil imports to average 1.5 million metric tons per month during the July–October period, up from the 1.3 million metric tons monthly average recorded in the first eight months of the 2025/2026 marketing year, which ends in October.
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Domestic Supply Tightens as Oilseed Processing Slows
B.V. Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA), said processing of soybeans and rapeseed has slowed because supplies from the previous harvest have nearly been exhausted. As a result, domestic vegetable oil production has declined, forcing the country to rely more heavily on imports.
“Oilseed crushing has slowed as supplies from last year’s harvest are almost depleted. With domestic vegetable oil availability falling, imports will need to increase over the coming months to meet market demand,” Mehta said.
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As the world’s largest vegetable oil importer, India’s increased purchases are expected to reduce palm oil and soybean oil inventories in major exporting countries, including Indonesia, Malaysia, Argentina, and Brazil. Analysts believe the stronger buying interest could provide support for Malaysian palm oil futures as well as global soybean oil prices.
Mehta estimates India’s total vegetable oil imports for the current marketing year will reach approximately 16.3 million metric tons, compared with 16 million metric tons in the previous season.
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Festival Season Drives Higher Buying
For more than two decades, India has relied on imports to meet nearly two-thirds of its vegetable oil demand, as domestic oilseed production has struggled to keep pace with rising consumption.
Sandeep Bajoria, Chief Executive Officer of Sunvin Group, said Indian refiners have already begun increasing purchases of palm oil and soybean oil for deliveries over the coming months in preparation for the country’s festival season.
Vegetable oil consumption in India typically accelerates between August and November, prompting refiners and traders to build inventories ahead of higher seasonal demand.
Indonesia and Malaysia remain India’s primary suppliers of palm oil, while soybean oil and sunflower oil are mainly sourced from Argentina, Brazil, Russia, and Ukraine.
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India Expands Supplier Base
Market participants also noted that Indian buyers have recently diversified their sourcing strategy. In addition to maintaining purchases from Indonesia and Malaysia, importers have expanded procurement from several countries in South America and Africa.
For soybean oil, India has also reportedly purchased supplies from China and Türkiye, reflecting a broader effort to diversify import sources amid evolving global market conditions.
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Palm Oil Imports Could Reach Five-Month High
Meanwhile, Rajesh Patel, Managing Partner of GGN Research, forecasts that India’s palm oil imports could jump 54% month-on-month in July 2026 to around 750,000 metric tons, marking the highest monthly volume in five months.
The expected increase in Indian demand is widely viewed as a bullish signal for the global palm oil market, particularly for Indonesia and Malaysia, the world’s two largest palm oil producers. Higher imports from India could help absorb export supplies, improve market sentiment, and support CPO prices amid ongoing volatility in global vegetable oil markets. (P2)
