India's vegetable oil imports rose 10% in April, but palm oil shipments fell sharply

According to traders, India reduced its palm oil imports in April by 27% compared to March to 505 thousand tons, which was the lowest figure since April 2025. As a result of the increase in palm oil prices, processors preferred cheaper alternatives. Therefore, soybean oil imports increased by 24% to 355 thousand tons, sunflower oil - doubled to 435 thousand tons, and total oil imports - by 10% to 1.3 million tons.

In March and April, palm oil prices in Malaysia reached $1,200/tonne and above, and have now fallen to $1,170/tonne, while soybean oil from South America is offered at $1,140-1,200/tonne FOB, and its prices are falling under the pressure of the new harvest. Sunflower oil prices from Argentina are $20-40/tonne lower than Black Sea prices, at $1,280/t FOB, which is boosting sales.

The situation was partly influenced by the energy market - rising gas prices forced some restaurants to reduce their use of frying oil. At the same time, some buyers increased their imports of sunflower oil to avoid supply disruptions due to geopolitical risks.

Experts note that even a small change in price significantly adjusts the structure of demand for oils from such a large importer as India. If the trend continues, it will lead to an increase in palm oil stocks in Malaysia and Indonesia, which will increase pressure on world prices.

According to the statistics bureau, Indonesia exported 5.85 million tons of crude and refined palm oil in the 1st quarter, which is 9.3% higher than the corresponding figure in 2025.

Palm oil prices are gradually rising in line with crude oil prices and amid Malaysia's plans to increase its mandatory biofuel quota to 15%, well below Indonesia's, which currently has a B40 mandate and will soon introduce a 50% biofuel quota.