India's vegetable oil imports remained stable at 16.3 million tonnes in the 2024-25 marketing year, mirroring the previous year's figures, according to the Solvent Extractors' Association of India (SEA). The marketing year concluded in October.

Key Trends and Highlights

• Flat Import Volume: The total vegetable oil imports, encompassing both edible and non-edible oils, remained virtually unchanged, registering 16.3 million tonnes.
• Record Soybean Oil Imports: Soybean oil imports reached a record high of 5.47 million tonnes in 2024-25, surpassing the previous peak of 4.23 million tonnes in 2015-16.
• Decline in Palm Oil Imports: Palm oil imports witnessed a sharp decline, falling to 7.58 million tonnes from 9.02 million tonnes in the previous year. This represents the lowest level in five years.
• Rise in Soft Oil Imports: Imports of soft oils, including soybean and sunflower oil, increased to 8.43 million tonnes from 6.95 million tonnes, primarily driven by higher soybean oil purchases.
• Shifting Market Share: Palm oil's share in India's total vegetable oil imports dropped to a record low of 47% from 56% in the previous year. Conversely, the combined share of soybean and sunflower oil rose to 53% from 44%.
• Import Value: India spent a record 1.61 trillion rupees on vegetable oil imports in 2024/25, surpassing the previous year's 1.32 trillion Rupees.

Factors Influencing the Market

Several factors contributed to these shifts in import patterns:

• Price Dynamics: Palm oil traded at a premium to soy oil for most of the marketing year, prompting refiners to switch to soy oil.
• Government Policies: In May 2025, the government widened the import duty gap between crude and refined oils to 19.25% from 8.25%, effectively halting refined palm oil imports.
• Duty-Free Imports from Nepal: India imported 750,000 tonnes of refined soybean and sunflower oils from Nepal under a zero-duty trade agreement. Refined vegetable oil imports from Nepal rose sharply to a record 746,400 tons, as the Himalayan nation's exports enjoy duty-free access under a regional trade pact.
• Evolving Consumer Preferences: The Indian Vegetable Oil Producers' Association (IVPA) noted a significant transformation in India's edible oil import patterns, driven by evolving market dynamics, global supply shifts, and consumer preferences. There is a steady rise in the preference for soft and blended oils, particularly among urban households and branded product manufacturers.

Supplier Landscape

• Palm Oil: Indonesia supplied 2.75 million tonnes of crude palm oil (CPO) and 832,152 tonnes of refined palm oil, while Malaysia exported 2.62 million tonnes of CPO to India.
• Soybean Oil: Argentina was the top supplier of soybean oil at 2.89 million tonnes, followed by Brazil at 1.14 million tonnes.
• Sunflower Oil: Russia led sunflower oil exports to India with 1.47 million tonnes.

Stock Levels

Total vegetable oil stocks in India stood at 1.73 million tonnes as of November 1, 2025, down from 1.99 million tonnes a month earlier, according to the SEA.

Impact and Implications

Lower palm oil imports by India, the world's biggest buyer of vegetable oils, could potentially boost inventories in top producing countries like Indonesia and Malaysia, and exert downward pressure on benchmark Malaysian palm oil futures. The IVPA has emphasized the need for policy measures to support the domestic refining sector and enhance self-reliance in edible oils. They also warned that refined oil entering at zero duty bypasses domestic refining, leading to lower plant utilization and shrinking margins, adversely affecting domestic investments, employment, and value addition in the refining sector.