Surge in India's Vegetable Oil Imports Amidst Rising Prices

India's vegetable oil imports surged 13% to 7.94 million tonnes in the first half of the 2025-26 oil year, driven predominantly by palm oil. This increase was influenced by currency depreciation, impacting import costs significantly. Meanwhile, soft oil imports fell, despite heightened demand and rising prices.

The Solvent Extractors Association of India (SEA) reported that India's vegetable oil imports increased by 13% in the first six months of the 2025-26 oil year, reaching 7.94 million tonnes. This rise is primarily due to a sharp increase in palm oil shipments, with the nation importing 7.04 million tonnes during the same period last year.

In terms of value, the imports grew by 19%, totaling Rs 87,000 crore for the November-April period, compared to Rs 73,000 crore a year earlier. Of the total imports, edible oils represented 7.82 million tonnes, while non-edible oils made up 121,000 tonnes, according to SEA's statement.

India's oil imports were primarily from Indonesia and Malaysia for palm oil, Argentina for soybean oil, and Russia and Ukraine for sunflower oil. Additionally, a notable factor affecting import costs was the Indian rupee's depreciation by over 9% against the dollar over the past year, posing concerns for importers and refiners as noted by the SEA.