Palm Oil Imports to India Fell to a Five-Month Low in October 2025
In October 2025, palm oil imports to India dropped to their lowest level in the past five months. According to preliminary estimates from the Solvent Extractors’ Association of India (SEA), this decline was due to reduced demand and a significant increase in domestic stocks.
This is reported by AgroReview
Main Reasons for the Import Decline
India imported about 750,000 tons of palm oil (including crude and refined) in October, significantly lower than the 980,000 tons recorded in September. This is the lowest import volume since May 2025, when shipments also decreased due to high global prices and low demand during the festival season.
Industry experts note that a key factor was the accumulation of large oil stocks at ports and warehouses in India — over 1.2 million tons. This substantially reduced the need for new purchases. Additionally, the country’s food industry cut back on procurement due to declining consumer demand.
Changes in Procurement Structure and Market Impact
Suppliers are increasingly turning to cheaper alternatives — soybean and sunflower oils. Their attractiveness has risen due to the narrowing price gap compared to palm oil. The reduction in India’s purchases has also affected the global market: specifically, there has been a decline in futures contracts for Malaysian palm oil, which remains a key price indicator.
“For the 2024/25 marketing year, which ended in October, palm oil imports to India decreased by 16% year-on-year — to 7.56 million tons, marking a five-year low.”
Meanwhile, prices for American soybean oil have received support as Indian importers are more actively purchasing alternative vegetable oils. Soybean oil imports have risen to multi-year highs, and sunflower oil purchases have also shown positive dynamics.
Overall, in October 2025, total imports of all edible oils to India decreased by 20.7% compared to September — to 1.27 million tons. This indicates a temporary decline in demand from the world’s largest consumer of vegetable oils, which could impact global prices in the palm oil market.