India's Edible Oil Imports Plunge Amid Policy Shift

India's import of edible oil fell by 16% in July due to a notable drop in palm oil shipments. The decline, driven by a policy change increasing the import duty on refined palmolein, is shifting focus back to crude oils, as reported by the Solvent Extractors’ Association of India.

India's edible oil imports experienced a significant downturn in July, dropping by 16%, as per data from the Solvent Extractors' Association of India (SEA). This decline is largely attributed to a reduction in palm oil shipments, both refined and crude.

According to the SEA, the government's recent decision to increase the import duty difference between crude palm oil and refined palmolein is incentivizing a return to crude oils. The duty change took effect in May 2025, marking a crucial policy adjustment to support the domestic refining sector.

Imports of refined palmolein fell sharply, while crude palm oil imports also recorded a decrease. Meanwhile, non-edible oil imports saw a notable reduction, indicating a broad trend towards less reliance on overseas oil purchases.

(With inputs from agencies.)