India Boosts Palm Oil Imports Amid Cost Advantage

India's palm oil imports surged by 10.1% in February due to a cost advantage over rival oils. This increase may deplete stocks in Indonesia and Malaysia. Soyoil imports also rose, while sunflower oil imports declined significantly. Overall edible oil imports fell slightly by 1.4%.

In a significant move driven by cost advantages, India's palm oil imports witnessed a notable increase of 10.1% in February, reaching a six-month high. This rise comes as refiners capitalized on palm oil's widening discount compared to other edible oils, cutting down on sunflower oil imports.

The spike in palm oil demand may potentially draw down inventories in key producers like Indonesia and Malaysia, leading to an uptick in Malaysian palm oil and U.S. soyoil futures. February's palm oil imports to India hit 844,000 metric tons, marking the highest since August 2025, up from 766,384 tons in January.

Soyoil imports experienced an 8.7% rise, recovering from January's 19-month low, while sunflower oil imports plummeted by 45.3%. Collectively, India's edible oil imports in February slightly declined by 1.4%, attributed to reduced sunflower oil purchases, as per industry estimates. The Solvent Extractors' Association of India will release its February data by mid-March.

(With inputs from agencies.)