India's edible oil imports declined sharply in June 2026, falling 30% year-on-year to 11.11 lakh tonnes (lt) from 15.97 lt in June 2025, according to the Solvent Extractors’ Association of India (SEA). The drop was primarily driven by a collapse in palm oil and soybean oil shipments, as global price dynamics and biofuel policies reshaped trade flows.
Drivers of the Decline
BV Mehta, Executive Director of SEA, attributed the plunge to a collapse in palm oil demand, which fell to 4.87 lt in June 2026 from 5.46 lt in May 2026 and 9.52 lt in June 2025. Soybean oil imports also declined to 3.80 lt in June 2026 from 4.93 lt in May. The key factor, Mehta said, was the vanishing price discount of palm oil against soft oils like soybean oil—dropping to under $50 per tonne. This made palm oil less attractive relative to alternatives.
Mehta further noted that the drop in Indian buying is a "ripple effect of simultaneous biofuel mandates introduced by Indonesia, Malaysia and the US," which are pulling millions of tonnes of vegetable oils out of the food economy into the fuel economy, driving up global spot prices.
Cumulative Imports and Nepal's Role
Despite the monthly decline, cumulative imports during the first eight months of the oil year 2025–26 (November–October) remained higher. India imported 103.88 lt of edible oil during November–June 2025–26, up 7% from 97.29 lt in the same period of the previous oil year.
Imports of refined oils from Nepal continued at significant levels. Nepal exported approximately 3.38 lt of refined oils to India during November–April 2025–26, comprising:
- 2.97 lt of refined soybean oil
- 19,911 tonnes of refined sunflower oil
- 18,295 tonnes of RBD palmolein
- 3,081 tonnes of rapeseed oil
Monthly exports from Nepal were estimated at around 54,000 tonnes in May 2026 and 32,000 tonnes in June 2026, consisting mainly of refined soybean oil along with smaller quantities of sunflower oil and RBD palmolein. Nepal benefits from nil import duty under the SAFTA agreement for exports to India.
Shift from Refined to Crude Oils
The composition of imports shifted markedly toward crude oils. During the first eight months of the oil year 2025–26, India imported only 3.68 lt of refined oil and 100.18 lt of crude edible oil, compared to 14.99 lt of refined and 82.29 lt of crude in the corresponding period of the previous year. The refined oil share dropped from 15% to 4%, while the crude oil share rose from 85% to 96%, driven largely by increased imports of crude palm oil.
| Import Type | 2025–26 (Nov–Jun) | 2024–25 (Nov–Jun) | Change |
|---|---|---|---|
| Refined oil | 3.68 lt | 14.99 lt | -75% |
| Crude oil | 100.18 lt | 82.29 lt | +22% |
Major Exporters and Price Movements
Crude palm oil was the largest imported oil category at 49.42 lt during the first eight months, followed by crude and refined soybean oil (32.73 lt) and sunflower oil (20.94 lt). Key exporter volumes:
- Malaysia: 19.81 lt of palm oil (19.58 lt CPO, 8,000 tonnes RBD palmolein)
- Indonesia: 19.04 lt of palm oil (18.79 lt CPO, 24,983 tonnes RBD palmolein)
- Argentina: 18.54 lt of crude soybean oil and 4.85 lt of sunflower oil
- Russia: 48,650 tonnes of crude soybean oil and 9.88 lt of sunflower oil
Smaller quantities were imported from Thailand, Brazil, Ukraine, China, Nepal, the UAE and other countries.
Price comparisons (June 2026 vs June 2025) show significant increases:
| Oil Type | Price Change YoY |
|---|---|
| Crude palm oil | +17% |
| RBD palmolein | +18% |
| Soybean oil | +14% |
| Sunflower oil | +19% |
Mehta also highlighted that the rupee depreciated by over 11% in the last year, terming it a "cause of concern" for Indian importers and refiners, as it further raises the landed cost of edible oils.
Outlook and Key Data Releases
With global biofuel mandates continuing to redirect vegetable oil supplies, and the price discount between palm and soft oils remaining narrow, Indian import volumes may stay under pressure in the near term. Market participants will watch for the next SEA monthly data release for July 2026 to assess whether the decline deepens or stabilizes. The impact of rupee depreciation on import costs will also be a critical factor for procurement teams and refiners.
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