India's edible oil imports to surge July-October as supplies shrink before festivals

Mumbai: India's edible oil imports are set to climb between July ​and October as slower soybean ​and rapeseed crushing erodes domestic supplies, ahead of peak festive demand, industry ​officials said on Wednesday.

Imports are expected to rise to an average of 1.5 million tons a month between July and October, B.V. Mehta, executive director of the Solvent Extractors' Association of India and four ‌other industry officials ⁠told ⁠Reuters.

Higher imports of palm oil and soybean oil by India - the world's biggest buyer of vegetable oils - are ​expected to reduce inventories in key suppliers Indonesia, Malaysia, Argentina and Brazil, while supporting benchmark Malaysian palm oil and ​soy oil futures.


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"Crushing of domestic oilseeds has slowed because supplies from last year's crop are nearly exhausted," Mehta said.

"With local edible oil supplies declining, imports will have to increase ​over the next few months to meet demand."

India imported ⁠an average ‌of 1.3 million metric tons of edible oils a month during ​the first ​eight months of the 2025/26 marketing year, which ends in October.

India's ⁠total edible oil imports in the current marketing year are expected ​to rise to 16.3 million metric tons from 16 million tons ​a year earlier, Mehta said.

India meets nearly two-thirds of its edible oil demand through imports, as domestic oilseed production has failed to keep pace with rising consumption over the past two decades.

Refiners are aggressively buying palm oil and soy oil for shipment over the next few months as they build inventories ahead of the festive season, said ‌Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage and consultancy firm.

India will celebrate a series of festivals between August and November, when ​demand for ​edible oils typically peaks.

India ⁠imports most of its palm oil from Indonesia and Malaysia, while soybean oil and sunflower oil are mainly from Argentina, Brazil, Russia and Ukraine.


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However, Indian buyers have recently diversified purchases, booking ​palm oil from suppliers in South America and Africa alongside traditional sources. Soybean oil imports have also included cargoes from China and Turkey, said a New Delhi-based trader.

India's palm oil imports in July are expected to jump as much as 54% from the previous month to a five-month high of 750,000 tons, said Rajesh Patel, managing partner at trader GGN Research.