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India’s palm oil imports fell to an eight-month low in December, affected by weak winter demand and refiners’ increased purchases of rival oils such as soybean oil and sunflower oil, according to five traders.
Lower palm oil imports by India, the world’s largest vegetable oil buyer, could raise inventories in major producers Indonesia and Malaysia, putting pressure on benchmark Malaysian palm oil futures while supporting US soybean oil futures.
According to trader estimates, palm oil imports fell by 20% month on month in December to 507,000 metric tonnes, the lowest level since April 2025.
At the same time, soybean oil imports jumped by 37% to 508,000 tonnes, while sunflower oil imports more than doubled to a 17-month high of 350,000 tonnes.
The estimates indicate that India’s total edible oil imports in December rose by 19% from the previous month to a three-month high of 1.37 million tonnes, driven by higher soybean and sunflower oil imports.
Traders said the import figures exclude duty-free shipments arriving through land borders from Nepal.
The Solvent Extractors’ Association of India, which is expected to release its December import data by mid-January, said India imported an average of around 632,000 tonnes of palm oil per month during the marketing year that ended in October 2025.
Rajesh Patel, managing partner at edible oil trader GGN Research in Rajkot, Gujarat, said palm oil demand remained weak because of the winter months and improved availability of domestic edible oils such as groundnut oil, soybean oil, and cottonseed oil.
India’s palm oil imports usually moderate during the winter months, as the tropical oil solidifies at lower temperatures, limiting its use in northern parts of the country.
India buys palm oil mainly from Indonesia and Malaysia, while soybean oil and sunflower oil are sourced from Argentina, Brazil, Russia, and Ukraine.
Sandeep Bajoria, CEO of vegetable oil brokerage and consultancy Sunvin Group, said palm oil imports are likely to rise in January, while soybean and sunflower oil imports may moderate because palm oil is now trading at a discount to the two rival oils.
Source: Reuters