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Argentina and Malaysia have successfully displaced Indonesia from its long-standing position as the top supplier of edible oils to India during the 2025-26 marketing year (October-September). According to a report by S&P Global, citing the US Department of Agriculture's Foreign Agricultural Service, Indonesia has fallen to third place as its domestic biodiesel blending mandates absorb a growing share of its palm oil production.
Indonesia has dominated India's import market for decades due to its lead in the global palm oil trade, but shipments have been on a downward trajectory since 2022-23. This decline is primarily driven by expanded biodiesel mandates increasing domestic palm oil use. Indonesia's domestic consumption is forecast to reach 23.38 million tonnes in 2026-27, a 4% increase from 2025-26, while its palm oil exports are projected to drop nearly 14% to 21.6 million tonnes in the same period.
The USDA recently revised its 2026-27 forecast for Indonesian palm oil consumption downward by 350,000 tonnes, while cutting closing stocks to 3.59 million tonnes. Conversely, the export estimate for 2025-26 was raised by 1.23 million tonnes to 25.03 million tonnes, reflecting current trade momentum.
Argentina emerged as India's primary vegetable oil supplier in 2025-26, buoyed by robust demand for soyoil and recent reductions in Argentine export levies. Malaysia and Thailand also increased their palm oil exports to India, supported by stronger production cycles. While Malaysian and Indonesian palm oil prices remained below soyoil for much of the month, they saw a sharp decline in early November following reports of stockpiles in Malaysia. Consequently, Malaysia's 2026-27 closing stocks forecast was raised to 2.5 million tonnes.
The market is also seeing new competitive entries, with China becoming the largest soyoil exporter outside of South America. China's exports jumped to 1.08 million tonnes in 2025-26, up from just 318,000 tonnes a year prior. According to the Solvent Extractors' Association of India, between November 2025 and September, India imported 3.44 million tonnes from Argentina, 2.98 million tonnes from Malaysia, and 2.91 million tonnes from Indonesia, out of a total 15.16 million tonnes.
Looking ahead, India's total vegetable oil imports are expected to reach a record 17.39 million tonnes in the 2026-27 oil year. While palm oil imports are forecast to rise to 8.40 million tonnes, soyoil imports are expected to contract to 5.0 million tonnes due to limited global export availability.
المصدر: إنفورميست
Source: Informist