India increased vegetable oil imports to a 2-year high in October
In October 2026, India increased vegetable oil imports by 13% compared to September to a 2-year high of 1.74 million tons due to the build-up of palm, soybean and sunflower oil stocks ahead of the festive period and against the backdrop of falling global prices.
Thus, compared to September, imports of palm oil increased by 6% to the highest level since August 2025 of 866 thousand tons, soybean oil - by 6% to a record 653 thousand tons, sunflower oil - doubled to 223 thousand tons, although in September imports of sunflower oil fell to a 4-year low.
However, the data provided are preliminary estimates by traders, and the official SEA association report on October deliveries will be released in mid-November.
The increase in purchases is due to a seasonal increase in demand for vegetable oils in September-November, when the country's consumption of sweets and fried foods increases sharply. This season, demand is supported by concerns about a possible shortage of oilseeds due to the adverse impact of the El Niño phenomenon.
Import purchases were also boosted by the government's decision to reduce basic import duties on crude and refined vegetable oils in September to reduce their cost during the peak holiday season. However, market participants believe that palm oil imports will remain high in November as it trades at a discount to other vegetable oils.
Increased imports by one of the world's largest buyers of vegetable oils could support global prices and slow the build-up of inventories in Indonesia and Malaysia, the largest palm oil producers. Argentina, Brazil, Ukraine and the Russian Federation remain India's main suppliers of soybean and sunflower oil.
January palm oil futures on Bursa Malaysia fell 2.69% to an 8-month low of 4,374 ringgit/t or $1,081/t yesterday, weighed down by rising production and a 6.8% rise in October inventories to a record 3.785 million tonnes, as well as a decline in soybean oil prices on the Dalian exchange. However, the quote is supported by a rise in Brent crude prices to $96.17/barrel and a possible increase in exports from Indonesia.
