Shift in Edible Oil Preferences: India Embraces Soybean Oil over Palm Oil

India's palm oil imports plummeted by 65% in January 2025, reaching a 13-year low, as consumers turned to the more affordable soybean oil. This shift, influenced by reduced Malaysian palm oil exports and cheaper South American options, significantly impacted the local market dynamics.

India's palm oil imports witnessed a significant drop of 65% in January 2025, marking the lowest figures in 13 years, as reported by the Solvent Extractors Association of India (SEA). This change is attributed to a consumer shift towards more cost-effective soybean oil.

According to the SEA, the overall vegetable oil imports decreased by 13%, from 12 lakh tonne last year to 10.49 lakh tonne this year. Malaysian palm oil exports dwindled, causing a noticeable consumer migration to South American soybean oil.

The SEA clarified that the local market is currently experiencing distortion due to a drastic increase in refined soybean oil and palm oil from Nepal. Despite palm oil price reductions, soybean oil's affordability continues to appeal to Indian consumers.

(With inputs from agencies.)