India's Edible Oil Imports Up 7% in Eight Months as Palm Oil Share Climbs to 48%
Cumulative edible oil imports touched 103.88 lakh tonnes in November 2025–June 2026, but a 29% plunge in June signals price-driven caution — even as palm oil tightens its grip on India's import basket.
The short answer
India's edible oil imports grew 7% year-on-year to 103.88 lakh tonnes in the first eight months of the 2025-26 oil year, according to the Solvent Extractors' Association of India (SEA). Palm oil's share of the import basket widened to 48% from 44%, while soft oils lost ground. However, June alone saw a sharp 29% year-on-year drop, driven by a narrowing price gap between palm oil and soft oils, biofuel policy headwinds, and a rupee that has weakened more than 11% against the dollar.
The big picture
Eight-Month Imports Grow Steadily, Even as June Stumbles
India's reliance on imported edible oils showed no signs of easing in the 2025-26 oil year. Total vegetable oil imports (edible and non-edible combined) rose 6% year-on-year to 105.71 lakh tonnes during November 2025–June 2026, according to data released by the Solvent Extractors' Association of India (SEA).
Within that, edible oil imports alone climbed 7% to 103.88 lakh tonnes, up from 97.29 lakh tonnes in the same period of the previous oil year. Crude palm oil was the single largest line item at 49.42 lakh tonnes, followed by crude and refined soybean oil at 32.73 lakh tonnes and crude and refined sunflower oil at 20.94 lakh tonnes.
The month of June, however, broke the trend sharply. Total vegetable oil imports fell 29% year-on-year to 11.47 lakh tonnes in June 2026, compared with 16.16 lakh tonnes in June 2025 — a clear sign that buyers pulled back on fresh orders.
Palm oil dominance
Palm Oil Tightens Grip, Soft Oils Cede Ground
Palm oil's ascent in India's import basket continued through the first eight months of the oil year. Imports of all palm oil varieties rose to 50.12 lakh tonnes from 42.94 lakh tonnes a year ago, pushing palm oil's share of total edible oil imports to 48% from 44%.
Soft oils — primarily soybean and sunflower — moved in the opposite direction. Combined imports dipped marginally to 53.76 lakh tonnes from 54.35 lakh tonnes, causing their collective share to fall to 52% from 56%.
The June slowdown, however, offered a nuance: palm oil demand weakened notably within the month itself. Palm oil imports in June fell 10.5% from May to 4.88 lakh tonnes, while soybean oil imports dropped 23% to 3.81 lakh tonnes from 4.94 lakh tonnes in May. SEA attributed both declines to the shrinking price premium of palm oil over competing soft oils — a discount that had narrowed to below US$50 per tonne, reducing the incentive for Indian buyers to favour palm.
The price discount of palm oil fell to below US$50 per tonne, reducing its competitiveness in the Indian market.
The supply squeeze
Biofuel Mandates and a Weaker Rupee Strain India's Import Bill
Two structural forces are reshaping the global edible oil landscape and directly pressuring Indian importers. First, biofuel blending mandates in Indonesia, Malaysia and the United States are diverting large volumes of vegetable oils away from the food sector, tightening international supplies and lifting spot prices, according to SEA.
The price impact was visible across the board in June 2026. Compared with a year earlier:
- Crude palm oil prices rose 17%
- RBD palmolein climbed 18%
- Soybean oil gained 14%
- Sunflower oil increased 19%
Layered on top of this, the Indian rupee depreciated by more than 11% against the US dollar over the past year, compounding import costs in rupee terms. Together, these pressures are squeezing margins across the edible oil supply chain and could dampen import volumes in coming months if price differentials do not normalise.
Sourcing and stocks
Argentina Leads Suppliers; Domestic Stocks Slip Below 20 Lakh Tonnes
India's sourcing remained geographically broad. Argentina was the largest edible oil supplier during November 2025–June 2026, shipping 23.39 lakh tonnes — predominantly crude soybean and sunflower oils. Malaysia was second with 19.81 lakh tonnes of palm oil, closely followed by Indonesia at 19.04 lakh tonnes. Russia, Brazil, Thailand, Ukraine, China, Nepal and the UAE rounded out the supplier list.
A structural shift in India's import composition also merits attention. Crude edible oil imports surged to 100.19 lakh tonnes from 82.29 lakh tonnes a year earlier, lifting crude oils' share to 96% of the total. Refined oil imports, by contrast, collapsed to 3.69 lakh tonnes from 15.00 lakh tonnes — their share falling to just 4% from 15%.
On the inventory side, total edible oil stocks (ports plus pipeline) stood at 20.09 lakh tonnes as of 1 July 2026, down from 22.16 lakh tonnes a month earlier — a direct consequence of the lower June arrivals.
The Nepal factor
Nepal's Zero-Duty Refined Oil Flows Remain a Market Variable
Nepal continued to channel meaningful volumes of refined edible oils into India, exploiting zero import-duty access under the South Asian Free Trade Area (SAFTA) agreement. Between November 2025 and April 2026, Nepal exported approximately 3.39 lakh tonnes of refined oils to India, comprising 2.98 lakh tonnes of refined soybean oil, 19,911 tonnes of refined sunflower oil, 18,295 tonnes of RBD palmolein and 3,081 tonnes of rapeseed oil.
Estimated exports continued in subsequent months — around 54,000 tonnes in May 2026 and 32,000 tonnes in June — consisting mainly of refined soybean oil alongside smaller quantities of sunflower oil and RBD palmolein. These duty-free flows from Nepal have long been a point of concern for domestic refiners, who compete at a structural tariff disadvantage, and will remain a variable that policymakers in New Delhi keep a close eye on.
Why it matters
With global vegetable oil supplies being diverted to biofuel programmes in Indonesia, Malaysia and the United States, international prices are likely to stay elevated — and a weaker rupee amplifies the cost burden for Indian importers and consumers alike. The sharp swing in Nepal's zero-duty refined oil flows and the dramatic shift toward crude oil imports (now 96% of the total) will keep domestic refiners and policymakers watchful. Traders should monitor whether palm oil's price discount over soft oils recovers past the US$50-per-tonne threshold, as that has historically been the trigger for bulk Indian buying.
Frequently asked
- How much did India's edible oil imports grow in the first eight months of the 2025-26 oil year?
- According to SEA data, cumulative edible oil imports rose 7% year-on-year to 103.88 lakh tonnes during November 2025–June 2026, up from 97.29 lakh tonnes in the same period of the previous oil year.
- Why did India's edible oil imports fall sharply in June 2026?
- SEA attributed the 29% year-on-year decline in June vegetable oil imports to the narrowing price advantage of palm oil over soft oils — the discount fell to below US$50 per tonne — as well as biofuel blending mandates in Indonesia, Malaysia and the United States, which tightened global supplies and pushed up international prices.
- What is palm oil's current share in India's edible oil import basket?
- Palm oil accounted for 48% of India's total edible oil imports during November 2025–June 2026, up from 44% in the same period a year earlier, with total palm oil imports rising to 50.12 lakh tonnes from 42.94 lakh tonnes.
- Which country was India's largest edible oil supplier in the 2025-26 oil year so far?
- Argentina topped the supplier list, exporting 23.39 lakh tonnes of edible oils — mainly crude soybean and sunflower oils — to India during November 2025–June 2026, followed by Malaysia at 19.81 lakh tonnes and Indonesia at 19.04 lakh tonnes.
Source
This report summarises and analyses coverage from Rural Voice — Latest. The analysis and India context are IndianAgri's own.