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India, the world's largest importer of vegetable oils, is gearing up for a substantial increase in edible oil imports between July and October. This anticipated surge is driven by dwindling domestic supplies, a consequence of slower soybean and rapeseed crushing, and the imminent peak demand period associated with the country's festive season.
Industry officials, including BV Mehta, executive director of the Solvent Extractors' Association of India, informed Reuters that imports are projected to average 1.5 million tonnes per month during this four-month period. This marks a notable rise from the average of 1.3 million metric tonnes imported monthly during the first eight months of the 2025/26 marketing year, which concludes in October.
Mehta explained that 'crushing of domestic oilseeds has slowed because supplies from last year's crop are nearly exhausted.' He added, 'With local edible oil supplies declining, imports will have to increase over the next few months to meet demand.' This reflects a broader trend where India relies on imports for nearly two-thirds of its edible oil needs, as domestic oilseed production has consistently lagged behind rising consumption over the past two decades.
The intensified import activity, particularly for palm oil and soyoil, is expected to reduce inventories in major supplier nations such as Indonesia, Malaysia, Argentina, and Brazil, while simultaneously supporting benchmark Malaysian palm oil and soyoil futures. Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage, noted that refiners are 'aggressively buying palm oil and soyoil for shipment over the next few months' to build up inventories in anticipation of the festive period from August to November, when edible oil demand typically peaks.
Rajesh Patel, managing partner at GGN Research, highlighted that India's palm oil imports in July alone are expected to reach a five-month high of 750,000 tonnes, representing a significant 54% jump from the previous month. While India traditionally sources most of its palm oil from Indonesia and Malaysia, and soyoil/sunflower oil from Argentina, Brazil, Russia, and Ukraine, Indian buyers have recently diversified their procurement. This includes booking palm oil from South American and African suppliers, and soyoil cargoes from China and Turkey, according to a New Delhi-based trader.
Overall, India's total edible oil imports for the current marketing year are forecast to reach 16.3 million metric tonnes, an increase from 16 million tonnes in the preceding year, as stated by Mehta.
Source: The Edge Malaysia