Shift in India's Edible Oil Imports: Palm Oil's Waning Dominance

India's reliance on palm oil is decreasing as it becomes costlier compared to soyoil and sunflower oil. This shift impacts global markets, with India's imports potentially reaching a five-year low. Soft oils gain popularity, while domestic production helps stabilize total edible oil import volumes.

India's edible oil import landscape is undergoing a notable shift, with palm oil losing its long-held dominance. For the first time, palm oil's share in the country's annual imports is poised to dip below that of soft oils like soyoil and sunflower oil, according to industry experts.

Supply issues have driven up palm oil prices, making alternatives more appealing. Sanjeev Asthana, president of the Solvent Extractors' Association of India, cited that palm oil imports for the 2024/25 marketing year could fall to a five-year low, further shifting the dynamic in the global market.

Despite palm oil's trading premium, the situation is expected to reverse, potentially revitalizing Indian imports. The rising local oil production could stabilize the country's total edible oil import requirements, maintaining them at approximately 16 million tons annually.

(With inputs from agencies.)