Lang
India's palm oil imports jumped 16% in August 2025 to hit a 13-month high of 993,000 tonnes, as refiners ramped up buying ahead of the country's festive season.
The surge reflects strategic purchasing driven by palm oil's price competitiveness against other vegetable oils such as soybean oil and sunflower oil, alongside seasonal consumption patterns that encouraged refiners and retailers to boost their buying ahead of rising demand for sweets and fried foods during the festivities.
The increase in palm oil imports marks an important development for India, the world's largest importer of vegetable oils, as it helps support producers such as Indonesia and Malaysia by drawing down their surplus stocks.
Analysts estimate that August's palm oil imports were the highest since July 2024, pointing to robust demand growth amid market conditions favouring palm oil over alternatives such as soybean oil.
In contrast to the rise in palm oil imports, soybean oil imports fell 28% month-on-month to around 355,000 tonnes, a six-month low, while sunflower oil imports rose 27% to 255,000 tonnes, a seven-month high.
Notably, India also imported 6,000 tonnes of canola oil in August, the first shipment of this size in nearly five years.
Overall, India's vegetable oil imports rose 3.6% in August from the previous month to around 1.6 million tonnes, the highest volume in more than a year.
This reflects dynamic shifts in consumer and industry preferences, shaped by price trends across vegetable oils. Industry experts point to palm oil's relatively low price compared with soybean oil — despite some volatility — as the key factor behind the increase in purchases.
Refiners benefited from palm oil's economic advantage over the past two months, in line with the usual consumption patterns seen as the festive season approaches.
Looking ahead, market participants expect India to maintain palm oil imports above 900,000 tonnes in September, with soybean oil imports also rising to exceed 450,000 tonnes.
India sources most of its palm oil requirements from Indonesia and Malaysia, while soybean and sunflower oil come mainly from Argentina, Brazil, Russia and Ukraine.
This rise in palm oil imports highlights the strategic buying behaviour of Indian refiners and consumers, who are balancing cost, demand and availability ahead of festive season requirements, while also reflecting broader shifts in the global vegetable oil market amid changing supply dynamics.
With festive-season consumption driving temporary spikes in demand and global supply chains adapting to this shift, India's vegetable oil market remains dynamic, shaped by both economic and cultural rhythms.