India’s palm oil frenzy sends edible oil import bill soaring

India, the world’s largest cooking oil consumer, sharply increased palm oil imports, lifting overall edible oil imports

Commodity Desk

MUMBAI

India’s vegetable oil imports rose sharply by 13% during the first half of the 2025-26 oil year, highlighting the country’s continued dependence on overseas supplies to meet domestic cooking oil demand. 

The surge was mainly driven by a steep rise in palm oil imports, even as shipments of soft oils such as soybean and sunflower oil declined. According to the Solvent Extractors Association of India (SEA), total vegetable oil imports increased to 7.94 million tonnes during November 2025-April 2026, compared with 7.04 million tonnes in the year-ago period. In value terms, the import bill jumped nearly 19% to Rs 87,000 crore, reflecting higher global edible oil prices and currency pressures.

The biggest trend during the period was the near doubling of palm oil imports to 3.97 million tonnes from 2.74 million tonnes a year ago.

Competitive pricing and ample supplies from Indonesia and Malaysia prompted refiners and traders to increase purchases aggressively. Palm oil continues to remain India’s most consumed edible oil due to its lower cost and extensive usage across households, food processing units and the hospitality sector. On the other hand, imports of soft oils declined to 3.85 million tonnes from 4.13 million tonnes.  Higher international prices of soybean and sunflower oils, along with geopolitical disruptions impacting sunflower oil supplies from the Black Sea region, pushed buyers towards cheaper palm oil alternatives.

The weakening rupee also added pressure on the import bill. SEA said the Indian currency depreciated more than 9% against the US dollar over the past year, significantly increasing landed costs for importers and refiners.  Palm oil prices rose 14-15% y/y, while soybean and sunflower oil prices increased by as much as 22%.  

Total vegetable oil stocks increased to 2.12 million tonnes in May 2026 from 1.35 million tonnes a year ago, indicating improved supply availability ahead of the festive and winter demand season.

(With inputs  from PTI)