India's edible oil imports declined by 30 per cent year-on-year in June 2026, driven by lower purchases of palm oil and soybean oil amid elevated global prices and changing market dynamics, according to data released by the Solvent Extractors' Association of India (SEA).
The country imported 1.11 million tonne of edible oil in June 2026, compared with 1.60 million tonne in June 2025.
BV Mehta, Executive Director, Solvent Extractors' Association of India, said the decline was led by a sharp fall in palm oil imports, which dropped to 487,000 tonne in June 2026 from 546,000 tonne in May 2026 and 952,000 tonne in June 2025. Soybean oil imports also moderated during the month, falling to 380,000 tonne in June from 493,000 tonne in May.
"This decline was caused by the vanishing price discount of palm oil against soft oils (like soy), which dropped to under $50 a tonne," said BV Mehta, Executive Director, Solvent Extractors' Association of India.
Mehta added that weaker Indian buying reflected broader developments in the global vegetable oil market.
"The drop in Indian buying is a ripple effect of simultaneous biofuel mandates introduced by Indonesia, Malaysia and the US. These policies are pulling millions of tonne of vegetable oils out of the food economy and into the fuel economy, driving up global spot prices," said Mehta.
Despite the decline in June, cumulative imports during the first eight months of the 2025-26 oil year (November-October) remained higher than the previous year. India imported 10.39 million tonne of edible oil between November 2025 and June 2026, compared with 9.73 million tonne during the corresponding period of the previous oil year, registering growth of 7 per cent.
Nepal Supplies Continue
Imports of refined edible oils from Nepal continued at a significant pace during the period. Between November 2025 and April 2026, Nepal exported about 338,000 tonne of refined edible oils to India, comprising 297,000 tonne of refined soybean oil, 19,911 tonne of refined sunflower oil, 18,295 tonne of RBD palmolein and 3,081 tonne of rapeseed oil.
Nepal's refined edible oil exports to India were estimated at around 54,000 tonne in May 2026 and 32,000 tonne in June 2026, consisting mainly of refined soybean oil, along with smaller quantities of sunflower oil and RBD palmolein. Nepal continues to enjoy zero import duty on these exports under the South Asian Free Trade Area (SAFTA) agreement.
Crude Oils Dominate
India imported 368,000 tonne of refined edible oil and 10.02 million tonne of crude edible oil during the first eight months of the current oil year. During the corresponding period of the previous oil year, refined oil imports stood at 1.50 million tonne, while crude edible oil imports totalled 8.23 million tonne.
As a result, refined oils accounted for only 4 per cent of total edible oil imports, compared with 15 per cent a year earlier. Crude edible oils increased their share to 96 per cent from 85 per cent, primarily because of higher crude palm oil imports.
Crude palm oil remained India's largest imported edible oil category, with imports of 4.94 million tonne during November-June. This was followed by crude and refined soybean oil at 3.27 million tonne and crude and refined sunflower oil at 2.09 million tonne.
Malaysia exported 1.98 million tonne of palm oil to India, including 1.96 million tonne of crude palm oil and about 8,000 tonne of RBD palmolein. Indonesia supplied 1.90 million tonne of palm oil, comprising 1.88 million tonne of crude palm oil and 24,983 tonne of RBD palmolein.
Argentina exported 1.85 million tonne of crude soybean oil and 485,000 tonne of sunflower oil to India during the period. Russia supplied 48,650 tonne of crude soybean oil and 988,000 tonne of sunflower oil.
"Smaller quantities were imported from Thailand, Brazil, Ukraine, China, Nepal, the UAE and other countries, reflecting a diversified sourcing pattern across different edible oils," said Mehta.
Prices Stay Elevated
According to SEA, edible oil prices remained significantly higher than a year ago. Compared with June 2025, crude palm oil prices rose 17 per cent, while RBD palmolein prices increased 18 per cent. Soybean oil prices gained 14 per cent and sunflower oil prices advanced 19 per cent over the same period.
"Rupee depreciated by over 11 per cent in last one year," said Mehta, adding that it remained "a cause of concern to Indian importers and refiners."
The association said higher global vegetable oil prices, supported by biofuel mandates in major producing countries and the depreciation of the Indian rupee, continue to influence import costs and procurement decisions for domestic refiners. |
