Edible Oil Imports Down 7% in Two Years

26-Nov-2025 06:19 PM

New Delhi. The President of the Indian Vegetable Oil Producers Association (IVPA), a leading organization of the domestic edible oil industry and trade, stated that India's edible oil imports have declined by approximately 7 percent over the past two years due to high prices in exporting countries.

Edible oil imports depend largely on global market prices, while domestic demand and requirements, as well as increases and decreases in customs duties, also influence the import of palm oil.

In the 2024-25 marketing season, palm oil imports declined significantly due to its higher price compared to soybean oil in top exporting countries like Indonesia, Malaysia, and Thailand. Meanwhile, soybean oil imports jumped to an all-time high of 5.5 million tons during the same period.

Sunflower oil imports remained nearly normal. Palm oil prices are now softening as outstanding surplus stocks in major exporting countries have increased to significant levels, exerting pressure on prices.

According to industry analysts, the price of crude palm oil (CPO) has fallen to $100 per tonne below soybean oil and $200 per tonne below sunflower oil, which could lead to a sharp increase in imports in the 2025-26 season. Thailand is now emerging as an important supplier of palm oil.

Increasing mustard oil production is essential as demand and consumption for its oil is growing. Although global palm oil production is also increasing, Indonesia, the leading producer and exporter, is consuming a significant portion of it for biodiesel production.

Globally, approximately 25-30 percent of edible oil is being used for biofuel production, which is likely to reduce its availability for edible purposes.

Edible oil imports are expected to be strong in the January-March 2026 quarter, and after that, when mustard oil supplies become abundant, imports may slow somewhat.