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Sanjeev Asthana, president of India's Solvent Extractors' Association, said last week that India's palm oil imports are expected to rise by about 20% in the new marketing year, as competitive prices help the tropical oil recover market share.
"Palm oil has become competitive against other oils following the recent decline, and this will boost import demand," Asthana told Reuters in an interview.
Higher purchases by the world's biggest buyer are likely to draw down stocks in major producing countries such as Indonesia and Malaysia.
India's palm oil imports could rise to 9.3 million tonnes in the 2025/26 season, up from 7.58 million tonnes last year — a five-year low that was 15.9% lower than the previous season, when the tropical oil traded at a premium to soybean oil for most of the period.
However, palm oil is currently selling at a discount of about $100 a tonne to soybean oil, and more than $200 a tonne to sunflower oil, prompting refiners to lock in supplies and sign contracts for the coming months.
Soybean oil imports in the new season are expected to slightly exceed last year's record of 5.47 million tonnes, while sunflower oil purchases are forecast to fall to between 2 and 2.5 million tonnes, down from 2.9 million tonnes the previous year, as crop damage in the Black Sea region pushed up prices.
India's total edible oil imports in the new season are expected to reach a record 16.5 to 17 million tonnes, driven by rising consumption, compared with 16 million tonnes last year.
India's imports of five major vegetable oils had earlier been reported to have fallen to 1.35 million tonnes in October 2025, down 9% from October 2024 and from 1.67 million tonnes in September 2025. However, the country's oil reserves are also shrinking, and analysts expect Indian buyers to step up their vegetable oil purchases in the coming months to ensure stability in the domestic market.
Source: Reuters