India's Edible Oil Imports Surge 33% in July 2026 on Palm and Soybean Demand
India imported 14.81 lakh tonnes of edible oil in July 2026 — up 33.3% from June — as palm oil and soybean oil demand spiked, while Nepal's duty-free refined oil flows and rising import prices add fresh pressure on refiners.
The short answer
India's edible oil imports jumped 33.3% month-on-month to 14.81 lakh tonnes in July 2026, driven by a near-50% surge in palm oil intake and a 31% rise in soybean oil purchases, according to data from the Solvent Extractors' Association of India. For the first nine months of oil year 2025-26, total imports are up 5% year-on-year at 119.23 lakh tonnes. Meanwhile, year-on-year import prices have risen sharply across all major oils, compounded by a rupee depreciation of over 11%.
The headline move
Palm and Soybean Oil Drive a Sharp Monthly Jump
India's edible oil imports climbed steeply in July 2026, reaching 14.81 lakh tonnes (lt) compared with 11.11 lt in June — a month-on-month increase of 33.3%, according to data compiled by the Solvent Extractors' Association of India (SEA).
The primary engine was palm oil: India purchased 7.30 lt of palm oil in July, up from 4.87 lt in June, a rise of 49.89%. The category encompasses crude palm oil, RBD palmolein, crude olein, and crude palm kernel oil. Soybean oil imports also rose meaningfully, climbing 31.05% to 4.98 lt in July from 3.80 lt a month earlier.
BV Mehta, Executive Director of SEA, attributed the surge squarely to strengthened demand for these two oils, noting that the latest figures confirm vegetable oil imports have remained higher overall during the current oil year.
The season picture
Nine-Month Tally Up 5%; Sunflower Gains, Soybean Slips
Zooming out to the full first nine months of oil year 2025-26 (November 2025 to July 2026), India imported 119.23 lt of edible oils — a 5% increase over the 113.46 lt recorded in the same period of 2024-25.
Breaking down the year-to-date performance by oil type:
- Palm oil: 57.45 lt, up 11.51% from 51.52 lt
- Sunflower oil: 23.48 lt, up 9.77% from 21.39 lt
- Soybean oil: 38.20 lt, down 5.63% from 40.48 lt
The soybean oil dip on a seasonal basis is noteworthy given the sharp monthly rebound in July. Mehta said the overall trend still points to elevated vegetable oil import dependency during the current oil year, a dynamic that has direct implications for domestic oilseed crushing economics.
Depreciation of rupee by over 11 per cent in last one year is a cause of concern to Indian importers and refiners.
The Nepal factor
Duty-Free Refined Oil Flows From Nepal Remain Elevated
Refined oil imports from Nepal continued at significant levels through the reporting period, adding a policy-sensitive dimension to the import story.
During November 2025 to May 2026, Nepal exported approximately 3.93 lt of refined oils to India, comprising:
- 3.46 lt of refined soybean oil
- 22,361 tonnes of refined sunflower oil
- 21,213 tonnes of RBD palmolein
- 3,536 tonnes of rapeseed oil
For June and July 2026, Nepal's refined oil exports to India were estimated at 56,000 tonnes and 61,000 tonnes respectively, consisting mainly of refined soybean oil with smaller volumes of sunflower oil and RBD palmolein.
Nepal enjoys nil import duty on exports to India under the SAFTA agreement, making its refined oil significantly price-competitive against domestically processed product — a standing concern for Indian refining capacity.
Supply origins
Argentina Leads Overall, Malaysia and Indonesia Dominate Palm
For the nine-month period of oil year 2025-26, Argentina was India's largest single supplier of edible oils at 27.35 lt, including 21.34 lt of crude soybean oil and 6.01 lt of sunflower oil.
On the palm oil side, Malaysia and Indonesia were the dominant sources:
- Malaysia: 22.61 lt total, comprising 22.39 lt of crude palm oil, 8,000 tonnes of RBD palmolein, and 14,850 tonnes of crude palm kernel oil
- Indonesia: 22.36 lt, of which 21.99 lt was crude palm oil and 36,478 tonnes was RBD palmolein
Russia contributed 11.35 lt, led by 10.81 lt of crude sunflower oil and 53,650 tonnes of crude soybean oil. The supply map underscores India's heavy concentration risk across a handful of origins, particularly for palm and sunflower oils.
Cost pressure
Import Prices Rise Across the Board; Rupee Slide Compounds Pain
Comparing July 2026 prices against July 2025, SEA's Mehta highlighted broad-based import price inflation across all major edible oil categories:
- Crude palm oil: up 13% year-on-year
- RBD palmolein: up 9%
- Soybean oil: up 8%
- Sunflower oil: up 20%
Adding to the cost burden, the Indian rupee has depreciated by over 11% against the dollar over the past year — a factor Mehta specifically identified as a cause of concern for Indian importers and refiners, since it amplifies the landed cost of every tonne imported, regardless of international price movements. The combination of higher global prices and a weaker rupee is squeezing margins at refineries that depend on imported crude oil.
Why it matters
With vegetable oil import volumes trending higher across the current oil year and prices climbing 8–20% year-on-year depending on the variety, domestic refining margins face a sustained squeeze. The continued flow of duty-free refined oils from Nepal — estimated at 61,000 tonnes in July alone — is a structural concern for Indian refiners competing on processed oil. Policymakers and the industry will need to monitor Nepal's SAFTA-facilitated exports closely, even as the rupee's depreciation of over 11% in the past year raises the landed cost of all imported oils.
Frequently asked
- How much edible oil did India import in July 2026, and how does it compare to June?
- India imported 14.81 lakh tonnes of edible oil in July 2026, compared with 11.11 lakh tonnes in June 2026 — a month-on-month increase of 33.3%, according to data from the Solvent Extractors' Association of India.
- Which oils drove the surge in India's July 2026 edible oil imports?
- Palm oil and soybean oil were the primary drivers. Palm oil imports rose 49.89% to 7.30 lakh tonnes in July from 4.87 lakh tonnes in June, while soybean oil imports grew 31.05% to 4.98 lakh tonnes from 3.80 lakh tonnes.
- Why are Nepal's refined oil exports to India a concern for the industry?
- Nepal exports refined oils to India at nil import duty under the SAFTA agreement. Exports reached an estimated 61,000 tonnes in July 2026 alone, consisting mainly of refined soybean oil. This makes Nepali refined oil highly price-competitive and puts pressure on Indian domestic refining margins.
- How have edible oil import prices changed year-on-year as of July 2026?
- Compared to July 2025, crude palm oil prices rose 13%, RBD palmolein by 9%, soybean oil by 8%, and sunflower oil by 20%. SEA's BV Mehta also flagged that the rupee's depreciation of over 11% in the past year further increases the landed cost for Indian importers and refiners.
Source
This report summarises and analyses coverage from The Hindu BusinessLine — Agri Business. The analysis and India context are IndianAgri's own.