India's edible oil imports saw a significant decrease of 16% in July 2025, falling to 15.48 lakh tonnes compared to 18.40 lakh tonnes in July of the previous year. This decline was primarily attributed to reduced shipments of palm oil, both in refined and crude forms. The Solvent Extractors' Association of India (SEA) reported that the data excludes imports from Nepal.
Several factors contributed to this decrease in edible oil imports. A key reason was a sharp decline in the inward shipments of refined palm oil. The increase in the import duty difference between crude palm oil (CPO) and refined palmolein, which rose from 8.25% to 19.25% effective May 31, 2025, made importing refined oil less economically attractive. Consequently, refined palmolein imports plummeted to 5,000 tonnes in July 2025, a stark contrast to the 1.63 lakh tonnes imported in the previous month and 1.36 lakh tonnes in July 2024.
Crude palm oil imports also saw a reduction, falling to 8,50,695 tonnes in July 2025 from 9,36,876 tonnes in the same month the previous year. Similarly, inward shipments of crude sunflower oil decreased to 2,00,010 tonnes from 3,66,541 tonnes.
The SEA has lauded the government's decision to widen the duty difference, stating it as a "bold and timely move". This measure is expected to discourage the import of refined palmolein and shift demand back to crude oils, which would revitalize the domestic refining sector.
Conversely, in June 2025, India witnessed a 25% surge in crude edible oil imports, spurred by the government's reduction of import duties on crude varieties. Effective May 31, 2025, the Basic Customs Duty on crude edible oils was reduced from 20% to 10%, encompassing key products like crude palm oil, crude soybean oil, and crude sunflower oil.
The total import of vegetable oil (edible and non-edible) also experienced a decrease of 17%, reaching 15,79,041 tonnes in July 2025, compared to 18,95,076 tonnes in the same month of 2024. Non-edible oil imports also fell to 31,000 tonnes from 55,014 tonnes.
During the first nine months of the current oil marketing year, which began in November 2024, total vegetable oil imports amounted to 110.13 lakh tonnes, a 9% decrease from the 121.24 lakh tonnes imported during the corresponding period of the previous year. Edible oil imports fell to 107.56 lakh tonnes from 115.69 lakh tonnes.
While palm oil imports have generally decreased, soyoil imports are projected to surge by 60% in the 2024/25 marketing year, reaching a record high due to competitive pricing. This shift is expected to reduce palm oil imports to a five-year low. Refiners are reportedly capitalizing on cheaper soyoil, even sourcing it from Nepal to leverage tax benefits.
In May 2025, India's edible oil imports rose 37% from the previous month, reaching 1.18 million tonnes, the highest since December, with palm oil imports leading the gains. This increase was attributed to depleted stocks and attractive prices compared to soybean and sunflower oils.
India's aggressive push for ethanol production is also impacting the edible oil sector. As the government incentivizes the use of corn and rice for biofuel, farmers are shifting away from oilseed crops, raising concerns about increasing import dependency. The surplus of Distillers Dried Grains with Solubles (DDGS), a byproduct of ethanol production, is weakening demand for oilmeals, depressing oilseed prices, and further encouraging the shift to corn and rice cultivation.
