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Rise in prices, West Asia tensions cause sharp decline in India's palm oil imports
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Monday, 20 April, 2026, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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India’s palm oil imports witnessed a sharp decline of approximately 19% in March, reaching a three-month low as rising global prices and geopolitical tensions in West Asia forced refiners to scale back purchases.
According to Shankar Thakkar, president of the All India Edible Oil Traders Federation, imports dropped to 689,462 metric tons in March, down significantly from 847,689 tons in February. This marks the lowest import volume since December 2025, contributing to a broader 9% fall in India’s total edible oil imports, which hit a one-year low of 1.17 million tons.
The reduction in imports was not limited to palm oil. Soybean oil purchases also dipped by 4% to 287,220 tons. In contrast, sunflower oil imports saw a robust increase of 35%, reaching 196,486 tons.
While the arrival of the fresh domestic mustard crop is currently providing some relief and limiting the immediate need for imports, the decline in foreign purchases has led to thinning stocks.
This supply crunch is providing temporary support to local oilseed prices but may eventually force the Indian importers to ramp up overseas buying in the coming months to replenish its reserves.
Looking ahead, the market remains volatile as Malaysian palm oil stocks are projected to drop by 19.2% to an eight-month low of 2.18 million tons due to surging exports.
Thakkar warned that if geopolitical tensions persist, the combination of tight global inventories and renewed demand from Indian refiners could drive prices higher across the edible oil sector.
While buyers are currently waiting for a price correction, any continued instability in the supply chain from major producers like Indonesia, Malaysia, and South America could lead to a significant price hike in the near future.
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