Edible Oils Imports Surge Despite Global Conflicts

India's edible oils imports increased by 12% in March, driven by higher crude palm oil shipments. However, due to firm global prices and high freight costs amid global conflicts, future imports may be subdued. The industry aims to focus on domestic production and diversified sourcing to mitigate risks.

India witnessed a 12% rise in its edible oils imports in March, reaching 11.73 lakh tonnes, mainly due to a surge in crude palm oil shipments. However, the Solvent Extractors' Association of India (SEA) warns that rising global prices and high freight costs, exacerbated by conflicts in West Asia, may dampen future imports.

According to SEA data, the imports of crude palm oil dramatically increased to 6,73,965 tonnes last month. In contrast, non-edible oil imports fell significantly. This increase in oil imports has been substantial during the early months of the 2025-26 marketing year, while India remains heavily dependent on imports to meet domestic demand.

In light of potential supply disruptions due to the Russia–Ukraine conflict and issues in Southeast Asia, Indian importers front-loaded purchases earlier this year. SEA emphasizes the need for India to bolster domestic oilseed production and diversify sourcing to mitigate geopolitical risks and stabilize future imports.

(With inputs from agencies.)