India’s palm oil imports drop to 8-month low as refiners shift to rival oils

MUMBAI: India’s palm oil imports fell to an eight-month low in December, as refiners increased purchases of rival oils such as soyoil and sunflower oil amid weaker seasonal demand during the winter months, a leading trade body said on Tuesday.

Lower palm oil imports by India, the world’s largest buyer of vegetable oils, could lift inventories in top producers Indonesia and Malaysia, weighing on benchmark Malaysian palm oil futures, while lending support to U.S. soyoil futures.

India’s palm oil imports in December fell about 20% from the previous month to 507,204 metric tons, he lowest since April 2025, the Mumbai-based Solvent Extractors’ Association of India (SEA) said in a statement.

India imported an average of about 632,000 tons of palm oil each month during the marketing year that ended in October 2025, according to SEA.

Imports of soyoil rose 36% to 505,112 tons in December, the highest in three months, and sunflower oil imports were up about 145% to a 17-month high 349,929 tons, the SEA said.

Total vegetable oil imports rose 17% to 1.38 million tons, the statement added.

India buys palm oil mainly from Indonesia and Malaysia, and imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.

“Palm oil demand was hit by seasonal slowdown during the winter months,” said a Mumbai-based dealer with a global trade house.

India’s palm oil imports typically moderate during the winter months, as the tropical oil solidifies at lower temperatures, limiting its use in northern parts of the country.

Palm oil’s discount to rival soyoil and sunflower oil has widened in recent weeks, which is expected to push India’s imports above 700,000 tons in January, the dealer said.

Soyoil and sunflower oil imports are likely to fall sharply in January, he said.