India soyoil imports to rise to record high on price competitiveness

India's soyoil imports are likely to surge to a record high in the 2025/26 marketing year as rallies in rival palm and sunflower oils make soyoil more competitive for price-sensitive Indian buyers, industry officials told Reuters.

Higher soyoil imports would offset a decline in sunflower oil shipments due to the Russia-Ukraine war and limit purchases of palm oil, which typically accounts for the bulk of India's edible oil imports, they said.

Soyoil imports are likely to rise 4.2% from last year's record purchases to 5.7 million metric tons in the current marketing year ending October 31, said Aashish Acharya, vice president at Patanjali Foods Ltd.


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"Soyoil was competitively priced compared with rival sunflower oil and palm oil supplies throughout the year," Acharya, whose company is a leading importer of edible oils, told Reuters.

Palm oil imports are likely to recover from last year's five-year low, rising 5.5% to 8 million tons, while sunflower oil imports are expected to decline 3% to 2.85 million tons, he said.

HIGHER INCOMES BOOSTING EDIBLE OIL DEMAND

India meets nearly two-thirds of its vegetable oil demand through imports, mainly palm oil, soyoil and sunflower oil from Malaysia, Indonesia, Argentina, Russia and Ukraine.

Indonesia's rising biodiesel consumption has trimmed palm oil supplies and lifted prices, while soyoil supplies were abundant and prices were lucrative in comparison, said B.V. Mehta, executive director of the Solvent Extractors' Association of India.

Higher soyoil imports will lift India's total edible oil imports in 2025/26 by 3.6% to a record 16.55 million tons, Mehta said.

"Rising per capita income is boosting edible oil demand, while domestic production remains stagnant. This is leading to higher imports," Mehta said.

Palm oil's share in India's total edible oil imports is set to fall below 50% for the second straight year in 2025/26, dealers with global trade houses said.