High Edible Oil Imports Likely to Continue in September

09-Sep-2026 04:14 PM

Mumbai: While India saw a significant rise in palm oil and soybean oil imports in August compared to July, sunflower oil imports dropped sharply. A similar import trend is expected to persist in the current month (September); a surge in sunflower oil imports appears unlikely until the intensity of the ongoing fierce conflict between Russia and Ukraine subsides and the unhindered, safe movement of commercial vessels resumes in the Black Sea region.

It is noteworthy that India sources the bulk of its sunflower oil from Russia and Ukraine, followed by Argentina. To compensate for the decline in sunflower oil imports from the Black Sea region, Indian refiners may aggressively increase imports of palm oil and soybean oil to ensure that the rising demand for edible oils during the festive season is met without difficulty. Concerted efforts will also be made to boost the supply and availability of mustard oil, soybean oil, and groundnut oil from domestic sources.

Palm oil is primarily imported from Indonesia, Malaysia, and Thailand, while soybean oil is sourced from Argentina and Brazil. Palm oil prices remain high and firm. The El Niño weather cycle is expected to significantly impact these three Southeast Asian nations, potentially affecting palm oil production.

Furthermore, Indonesia's use of 50 percent of its palm oil for biodiesel production will reduce exportable stocks, potentially tightening global palm oil supplies. Conversely, Brazil has seen record soybean production and Argentina has had an excellent harvest, with prospects for good production in Africa as well. Consequently, soybean oil prices may remain highly competitive, potentially leading to robust imports into India.