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India ups palm oil purchases as it gets cheaper than soy oil
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Saturday, 03 May, 2025, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The All India Edible Oil Traders Federation has said that India has started increasing palm oil purchases after a five-month slowdown as the fall in prices has made it cheaper than rival soy oil.
Shankar Thakkar, president of the federation, said that the price of crude palm oil is currently around $1,050 per tonne, while soy oil is priced at $1,100 per tonne, forcing Indian importers to re-stock amid dwindling stocks. Imports of palm oil fell significantly from December to March, but imports are expected to rise to over 500,000 tonne in May and over 600,000 tonne in June.
"This shift in demand is expected to support Malaysian palm oil future trade, which has fallen by about 10% in 2025. The improvement in buying signals a new demand cycle as our ports and refiners may aim to replenish their depleted stocks. Palm oil is now cheaper than soy oil in the international markets, leading to a revival of buying," said Thakkar.
Palm oil lost its price advantage over soy oil late last year, leading Indian buyers to significantly cut imports. From December to March, India imported only 1.57 million tonne of palm oil - an average of 384,712 tonne per month. This was far below the 750,000 tonne import per month during the marketing year ending October 2024.
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Dealers expect demand to rise further between July and September, possibly surpassing 700,000 tonne monthly, as refineries work to replenish stocks. The rise in Indian demand will be closely watched by global markets, especially since India imports palm oil mainly from Indonesia and Malaysia and some quantity from Thailand.
Thakkar added that India's rising imports reflect a significant shift in demand, which is likely to impact global edible oil markets in the coming months.
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