According to the Solvent Extractors' Association of India (SEA), India's palm oil imports in May edged up 7% month-on-month to 549,356 metric tons, rebounding from a four-month low but remaining below the average monthly imports of 632,000 tons recorded in the marketing year ended October 2025. The modest recovery was offset by a narrowing price advantage for palm oil over soyoil, which prompted refiners to increase their soyoil purchases.
Import Trends and Composition
The SEA's statement detailed the following changes in May imports for the major vegetable oils:
| Vegetable Oil | May Imports (metric tons) | Month-on-Month Change |
|---|---|---|
| Palm oil | 549,356 | +7% |
| Soyoil | 493,854 | +37% |
| Sunflower oil | 295,726 | -32% |
| Total | 1,370,000 | +4.2% |
Total vegetable oil imports reached their highest level in three months at 1.37 million tons, up 4.2% from April, according to the SEA. In the first seven months of the 2026/27 marketing year (since November 1), cumulative vegetable oil imports rose 12% year-on-year to 9.2 million tons.
"Restaurants and other commercial users haven't been buying as much palm oil because of cooking gas shortages, and that's been weighing on imports," said a Mumbai-based dealer with a global trade house.
Supply Dynamics and Outlook
Lower-than-usual palm oil imports by the world's biggest vegetable oil buyer could lead to swelling stocks in top producers Indonesia and Malaysia, potentially weighing on benchmark Malaysian palm oil futures, the SEA noted. India sources most of its palm oil from these two Southeast Asian nations, while soyoil and sunflower oil are imported mainly from Argentina, Brazil, Russia, and Ukraine.
Looking ahead, Rajesh Patel, managing partner at trader GGN Research in Rajkot, Gujarat, forecast that palm oil imports could rise above 600,000 tons in June, while soyoil imports may fall to around 350,000 tons. This shift reflects the dynamic substitution effect between oils as price differentials change.
Market Implications
The import data underscores the sensitivity of India's vegetable oil demand to relative pricing and end-user behaviour. With commercial users reducing palm oil consumption due to cooking gas shortages, the recovery in imports has been muted. Higher soyoil arrivals helped lift total volumes, but the sustainability of that trend depends on the evolution of the palm oil premium over soyoil in international markets. The SEA's next monthly update will provide further clues on whether the expected rise in palm oil imports materialises.
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