Palm oil imports may overtake soybean oil

28-Jul-2025 12:45 PM

Mumbai. Although in recent months, the import of soybean oil has increased more rapidly than palm oil, the Executive Director of Solvent Extractors Association of India (C) believes that this situation may change soon. In the second half of the current marketing season (November-October) of 2024-25, palm oil imports will grow at a faster pace than soybean oil as it has once again become cheaper.

According to the Executive Director, Indian producers have started buying palm oil in large quantities as there is sufficient stock available in the supplier countries and its import cost is low.

Earlier, 60 percent palm oil and 40 percent soft oil were being imported in India, but in recent months this estimate has increased to 50-50 percent because the price of palm oil was running high during the half year from November 2024 to April 2025. But later it softened a bit. Palm oil is very important for India and work cannot be done without it.

India needs about 80 lakh tonnes of palm oil every year and this is the only edible oil that can be imported in such a huge quantity. Soybean oil or sunflower oil cannot completely replace it.

The association believes that the import of crude edible oils may increase rapidly in the coming months because the festival season will be in the country from August to November.

On the other hand, the supply of edible oil from indigenous sources is also less during the second half of the marketing season. As a result, the import of edible oils is more in the second half as compared to the first half.

According to the Executive Director, overall the import of edible oils in the current marketing season is likely to be slightly less than the previous season because during the last Kharif season, there was a great production of soybean and groundnut in the country and its crushing-processing is also being done in good quantity.