India’s palm oil imports plunged sharply in December 2025, falling to an eight‑month low of approximately 507,204 metric tons. According to data from the Solvent Extractors’ Association of India (SEA), this marked a 20% drop from November levels, the lowest import volume since April 2025.
Industry sources attribute the decline to seasonal demand patterns and refiners shifting purchases toward competing edible oils. Imports of soybean oil jumped about 36% to roughly 505,000 tons — a three‑month high — while sunflower oil imports soared nearly 145% to a 17‑month peak of nearly 350,000 tons.
Palm oil typically sees reduced use during India’s winter months, particularly in northern regions where cooler temperatures solidify the tropical oil and limit its usability in food processing. This seasonal slowdown further contributed to the import dip in December.
Despite the steep drop in palm oil volumes, India’s overall edible oil imports increased about 17% in December to around 1.38 million tons. This was driven largely by higher soybean and sunflower oil purchases, as refiners diversify sources to meet year‑end demand.
The reduction in palm oil imports could boost inventory levels in top supplying countries such as Indonesia and Malaysia, potentially exerting downward pressure on benchmark Malaysian palm oil futures. Conversely, increased demand for rival oils may support price strength for soybean and sunflower oil futures on global exchanges.
India is the world’s largest importer of vegetable oils, and palm oil has historically made up the largest share of its edible oil imports. However, price dynamics, seasonal demand shifts, and diversified preferences continue to reshape import patterns.
