India’s vegetable oil buyers step back, betting war-driven rally will ease

MUMBAI: Indian vegetable oil refineries are curtailing purchases of palm oil, soyoil and sunflower oil, betting that the Iran war-driven price rally will not last and that they can replenish stocks after the conflict ends, industry officials told Reuters.

Lower buying by India, the world’s largest importer of vegetable oils, could limit gains in Malaysian palm oil and U.S. soyoil prices, while supporting local vegetable oil prices and domestic oilseed growers.

Palm oil prices earlier this month climbed to their highest in more than a year on expectations that rising crude oil prices, driven by the Middle East conflict, would boost demand for the tropical oil from the biodiesel sector.

“There’s no need to panic-buy. There are ample stocks available in the global market, and prices will come down sharply the moment the war ends,” said a senior official with a leading edible oil importing company, which has curtailed imports for March and April delivery.

India’s Feb palm oil imports jump 11% to six-month high on price discount

India, which meets nearly two-thirds of its vegetable oil needs through imports, brought in an average 1.36 million metric tons a month in the marketing year that ended in October 2025.

Imports are likely to fall to about 1.1 million tons in March, with palm oil shipments seen at around 680,000 tons, down from 847,689 tons the previous month, according to estimates from three dealers at global trade houses.

“Indian buyers have largely stayed on the sidelines over the past few days. The recent correction in palm oil prices may attract some buying, but overall sentiment remains wait-and-watch,” said Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage and consultancy firm.

Malaysian palm oil was trading 1.7% lower on Tuesday.

Stock levels from recent months of imports are comfortable, encouraging Indian buyers to bet the war will not last long, said a Mumbai-based dealer with a global trade house.

Supplies from India’s new-season rapeseed crop have started arriving, with output estimated at a record high, helping to partly offset lower imports, the dealer said.

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