India’s palm oil imports surged 16% in August 2025 to reach a 13-month high of 993,000 metric tons, as refiners ramped up purchases ahead of the country’s peak festive season.
The spike reflects strategic buying driven by the competitive pricing of palm oil compared to other edible oils, such as soyoil and sunflower oil, and seasonal consumption patterns, which encouraged refiners and retailers to increase their purchases in preparation for the demand surge during festivals marked by higher consumption of sweets and fried foods.
The increase in palm oil imports is a significant development for India, the world’s largest buyer of vegetable oils, helping to support palm oil producers like Indonesia and Malaysia by reducing their inventory surpluses.
Analysts estimate that palm oil imports in August were the highest since July 2024, indicating robust demand growth amid market conditions favorable for palm oil over alternatives such as soyoil.
In contrast to the rise in palm oil imports, soyoil imports fell by 28% month-on-month to around 355,000 tons, the lowest level in six months, while sunflower oil imports increased by 27% to 255,000 tons, marking a seven-month peak. Interestingly, India also imported 6,000 tons of canola oil in August, marking the first such import volume in nearly five years.
Overall, India’s total edible oil imports increased by 3.6% in August compared to the previous month, totalling around 1.6 million tons, the highest volume in over a year.This reflects dynamic shifts in consumer and industrial preferences influenced by price trends across vegetable oils.Industry experts suggest that the tropical oil’s relatively lower price against soyoil, despite some fluctuations, is the primary driver of increased palm oil purchases.
Refiners have taken advantage of palm oil’s cost-effectiveness during the past two months, aligning with usual consumption patterns as the festive season approaches. Looking ahead, stakeholders expect India to sustain palm oil imports above 900,000 tons in September, with soyoil imports also anticipated to exceed 450,000 tons.
India sources most of its palm oil imports from Indonesia and Malaysia, while soyoil and sunflower oils predominantly come from Argentina, Brazil, Russia, and Ukraine.
This surge in palm oil imports highlights the strategic purchasing behavior of Indian refiners and consumers, who are balancing cost, demand, and availability as they prepare for the festive season’s needs, while also underscoring shifts in the broader edible oil market amid changing global supply dynamics.
With festive consumption driving short-term spikes and global supply chains adjusting to shifting demand, India’s edible oil market remains dynamic, influenced by both economic and cultural rhythms.
