India reduced vegetable oil imports by 9% in March

India's vegetable oil imports fell 9% in March from February to 1.18 million tonnes, the lowest since April 2025, as purchases of soybean and palm oil fell. The drop in supplies could deplete inventories and support domestic oilseed prices, but could force the country to increase imports in the coming months. However, the country has already started harvesting a new rapeseed crop, which should reduce its dependence on imports in the short term.

 

According to dealers, palm oil imports in March fell by almost 19% from February to 847,689 thousand tonnes to a 3-month low of 689 thousand tonnes as its prices rose in line with energy prices, forcing processors to cut purchases in anticipation of price adjustments. Soybean oil imports in March fell by 3% to 290 thousand tonnes, while sunflower oil rose by 36.3% to 198 thousand tonnes. The figures do not include duty-free land deliveries across the border with Nepal, from where about 60 thousand tonnes of edible oils, mainly soybean, were delivered in March, dealers said.

 

The Indian Association of Processors SEA will release official data on March imports by mid-April.

 

Recall that India imports the bulk of its palm oil from Indonesia and Malaysia, and soybean and sunflower oil from Argentina, Brazil, Ukraine, and the Russian Federation.

 

In March, Malaysian palm oil futures rose 19.47%, posting the biggest monthly gain since April 2022, driven by expectations of increased demand for biodiesel fuel due to rising energy prices due to the war with Iran.

 

June palm oil futures on the Bursa exchange in Malaysia rose 1% on Friday to the highest level since December 13, 2024, at 4,838 ringgit/t or $1,201/t (+4.47% for the week).

 

Markets expect oil supplies from the Persian Gulf to be unblocked in the coming weeks and prices for crude and vegetable oils to fall.