India's Palm Oil Imports Hit Five-Year Low Amid Soyoil Surge

India's palm oil imports fell to a five-year low in the 2024/25 marketing year, affected by a price premium that boosted soyoil imports to a record high. This shift in buying could impact top producers Indonesia and Malaysia. Overall vegetable oil imports slightly increased while expenses reached a record high.

India's palm oil imports plummeted to their lowest point in five years during the 2024/25 marketing season, a recent statement by the Solvent Extractors' Association (SEA) revealed. At the same time, buyers turned to soyoil, which saw a record increase due to a significant price premium over palm oil.

With India being the leading global buyer of vegetable oils, reduced palm oil imports may lead to increased stockpiles in top oil-producing nations like Indonesia and Malaysia. The SEA outlined a reduction of 15.9% in palm oil imports compared to the previous year, hitting 7.58 million metric tons, a figure not seen since 2019/20.

Soyoil imports surged by 59% to reach a peak of 5.47 million tons, while sunflower oil purchases dropped by 16.3% to 2.9 million tons. During this period, palm oil continued to trade at a premium to soyoil, leading refiners to seek more cost-effective options. Total edible oil imports rose slightly year-on-year, with refined vegetable oil imports from Nepal setting a new record, capitalizing on duty-free trade agreements.

(With inputs from agencies.)