Palm Oil Regains Appeal as Prices Drop, Indian Importers Renew Interest

26-Apr-2025 12:16 PM

New Delhi, April 26, 2025 — After months of sluggish demand, palm oil is once again attracting Indian importers as international prices become more competitive.

For the past five months, palm oil imports had remained weak due to high export prices from key suppliers like Indonesia, Malaysia, and Thailand, while soybean and sunflower oils offered better value.

India, the world’s largest importer of edible oils, saw a significant dip in palm oil imports from January to March 2025, leading to tight domestic stock levels. Refiners, who had been waiting for a price correction, are now responding to falling rates.

Exporters, facing declining demand, were compelled to cut prices. As a result, palm oil has become more attractive, with the current landed price for crude palm oil for May delivery at around $1050 per tonne, compared to $1100 for soybean oil.

In Malaysia, benchmark crude palm oil futures have fallen about 10% so far this year. While imports may remain subdued through April, a recovery is expected starting May, especially if prices stay competitive.

However, analysts caution that any sharp price hike could again shift Indian demand back to rival oils.