Sharp Rise in Palm Oil Imports Expected

24-Nov-2025 12:46 PM

Mumbai. In top exporting countries like Indonesia, Malaysia, and Thailand, the export offer price of palm oil remained higher than soybean oil and sunflower oil for most of the 2024-25 marketing season, leading to a decline in its imports into India.

However, palm oil imports are expected to increase sharply during the current 2025-26 marketing season (November-October) as prices have fallen to competitive levels. The high surplus palm oil stocks in Malaysia are putting pressure on prices.

Industry analysts expect India's gross palm oil imports to increase by 15-20 percent during the 2025-26 season compared to the 2024-25 season.

The President of the Solvent Extractors' Association of India (SI) has projected that gross imports of crude and refined edible oils from the palm category will increase from 7.58 million tons in the 2024-25 season to 9.3 million tons in the 2025-26 season.

It is noteworthy that palm oil imports declined by approximately 16 percent during the 2024-25 season compared to the 2023-24 season.

Currently, the export offer price of palm oil in supplier countries has declined to approximately $100 per tonne below soybean oil and approximately $200 per tonne below sunflower oil. This is providing a significant incentive for Indian refiners to increase crude palm oil imports.

As for soybean oil, its imports into India jumped to an all-time high of 5.47 million tons during the 2024-25 season, with further increases expected during the 2025-26 marketing season.

On the other hand, sunflower oil imports are expected to fall from 2.9 million tons to between 2-2.5 million tons during the same period, as adverse weather and natural disasters have damaged sunflower crops in the Black Sea region, particularly in Ukraine, Russia, and Romania, pushing up oil prices. Indian refiners are making forward deals for palm oil.