India's Palm Oil Imports Hit Three-Month Low Amid Price Rally

India's palm oil imports decreased by 19% in March, reaching a three-month low due to rising tropical oil prices. This decline may deplete local stocks and impact oilseed prices but could lead to increased overseas buying. Soyoil imports slightly fell, while sunflower oil imports rose significantly.

In March, India's palm oil imports fell by nearly 19%, hitting a three-month low as a surge in tropical oil prices, influenced by energy markets, led refiners to pause purchases, according to insights from five industry dealers.

This decline could drain stocks and bolster local oilseed prices but may necessitate increased overseas buying to replenish inventories. March's palm oil imports stood at 689,000 metric tons, representing the lowest since December 2025 and down from February's 847,689 tons, as estimated by dealers.

Soyoil imports saw a 3% month-on-month decline to 290,000 tons in March, while sunflower oil shipments increased by 36.3% to 198,000 tons. Combined edible oil imports decreased by nearly 9% from February to a total of 1.18 million tons in March, the lowest since April 2025. This data excludes duty-free shipments via Nepal, with March imports estimated at 60,000 tonnes, primarily soyoil, according to Rajesh Patel of GGN Research.

The Solvent Extractors' Association of India plans to release official March import data by mid-April. Crude palm oil refining margins turned negative with rising overseas prices, resulting in cutbacks on Indian imports as prices surged 19.47%, the strongest gain since April 2022, due in part to the Middle East conflict boosting biodiesel demand.

Incoming supplies from the new-season rapeseed crop are also limiting imports temporarily, according to Sandeep Bajoria of Sunvin Group. India sources most palm oil from Indonesia and Malaysia, while importing soyoil and sunflower oil mainly from Argentina, Brazil, Russia, and Ukraine.

(With inputs from agencies.)