India reduced vegetable oil imports by 16.6% in June

In June 2026, India reduced imports of vegetable oils by 16.6% compared to May to 1.1 million tons, in particular soybean oil by 23% to 381 thousand tons, sunflower oil by 17.5% to 244 thousand tons, and palm oil by 10.5% to a 14-month low of 492 thousand tons.

 

Traders attribute the reduction in imports to a decline in demand in the domestic market and a narrowing of the discount between palm and soybean oil prices.

 

Previously, palm oil had a significant price advantage, which stimulated its imports, but now the discount compared to the price of soybean oil has decreased to $50/t, so it has become unprofitable for processors to buy it.

 

Import volumes are being affected by restrained purchases by importers, who expect further price declines and buy volumes necessary to cover current needs. In addition, heat and the increase in the cost of gas used for cooking are also reducing oil consumption.

 

A decline in demand from India, the world's largest importer of vegetable oils, could lead to increased inventories in major palm oil producing countries Malaysia and Indonesia, forcing exporters to lower prices in the competition for buyers.

 

The Vegetable Oil Producers Association of India (SEA) will release official data on vegetable oil imports for June in mid-July. The market is closely watching these reports as confirmation of previous estimates will add pressure on palm oil prices and related vegetable oil markets.