Lang
India's palm oil imports rose 87% in May 2025 compared with April, reaching 600,000 tonnes — the highest level since November 2024 — according to estimates from a number of traders.
The increase was driven by falling domestic stocks, as well as the fact that palm oil is now trading cheaper than soybean oil and sunflower oil, prompting Indian refiners to step up purchases.
As the world's largest importer of vegetable oils, India's higher imports of palm oil and soybean oil could bolster prices of Malaysian palm oil and US soybean oil on global markets.
According to the Solvent Extractors' Association of India (SEA), average monthly palm oil imports during the marketing year that ended in October 2024 exceeded 750,000 tonnes.
However, the period from January to April 2025 saw a sharp decline in imports due to palm oil trading at a premium to soybean oil, which led to a significant drawdown in stocks.
Rajesh Patel, managing partner at GGN Research, said:
"Since palm oil started trading at a discount last month, Indian buyers have returned to it again."
India's vegetable oil stocks stood at around 1.35 million tonnes as of 1 May 2025, the lowest level recorded since July 2020, according to SEA data.
Sandeep Bajoria, chief executive of Sunvin Group, forecast that palm oil imports would reach:
He added that the recent decline in palm oil prices, combined with lower import duties, is expected to boost domestic consumption.
In a move to support the refining industry and ease food prices, the Indian government announced on Friday a cut in the basic import duty on crude edible oils to 10%.
According to GGN Research estimates, Nepal's edible oil imports reached 132,000 tonnes in May, up from 87,000 tonnes in April.