In September, India — the world’s largest importer of vegetable oils — recorded a marked drop in palm oil imports, while purchases of alternative oils surged. This shift reflects strategic pricing decisions and global supply factors reshaping India’s edible oil landscape.
Palm oil imports fell by 16.3% month-on-month to 829,017 metric tons, their lowest level since May. This decline comes despite the traditional rise in palm oil demand during the festival season, when consumption of fried foods and sweets typically spikes.
Meanwhile, soyoil imports rose sharply by 36.8%, reaching 503,240 tons — the highest since July 2022. Sunflower oil also saw a moderate increase of 6%, bringing imports to 272,386 tons, a nine-month high.
The overall volume of edible oil imports in September stood at 1.60 million tons, down just 1% from the previous month. But the shift in composition signals a changing preference in procurement, driven largely by price competitiveness.
One major driver: Argentina’s recent tax reform, which eliminated export duties on soy-based products. In response, Indian refiners secured 300,000 tons of soyoil from Argentina in just two days — the country’s largest-ever purchase in such a short period.
Looking ahead, industry estimates project palm oil imports in October to drop further to around 600,000 tons, while soyoil is expected to remain above 450,000 tons.
India sources its palm oil mainly from Indonesia and Malaysia, while soyoil and sunflower oil are imported from Argentina, Brazil, Russia, and Ukraine. This diversified supply network enables quick shifts in import strategies based on price movements and global policy shifts.
These dynamics are expected to influence global markets. A fall in Indian palm oil demand may put downward pressure on Malaysian palm oil futures, while boosting U.S. soyoil futures.
For refiners and investors, the trend highlights India’s flexible procurement strategy — one that is increasingly responsive to global pricing incentives. As edible oil prices remain volatile and geopolitical factors continue to affect trade flows, India’s shifting import mix serves as an early signal of broader market adjustments across Asia.