India's Edible Oil Imports Reach Multi-Month High in October Amid Festive Demand

Indian palm oil imports rose to their highest level in more than a year in October, while soyoil purchases hit a record high, according to estimates from five industry dealers. Lower prices prompted refiners to step up buying to build stocks ahead of the festive season.

As the world's largest vegetable oil buyer, higher imports by India could curb stock growth in top producing countries like Indonesia and Malaysia, despite higher production, and lend support to benchmark palm oil futures.

India's palm oil imports in October rose 6 percent from a month earlier to 866,000 metric tons, representing the highest volume since August 2025 based on dealers' average estimates. Meanwhile, soyoil imports also rose 6 percent month-on-month to an all-time peak of 653,000 tons. Sunflower oil shipments doubled from the previous month's four-year low to reach 223,000 tons.

Overall edible oil imports increased by 13 percent to 1.74 million tons, marking the highest level in more than two years, driven by higher shipments across all three major oils. The Solvent Extractors' Association of India is scheduled to publish its official October import data by mid-November.

Edible oil imports typically rise during the September-November festive season as households and commercial kitchens increase the production of sweets, snacks, and fried foods. India is celebrating the Diwali festival this month, a period when the demand for edible oils typically peaks.

Demand has been amplified this year by concerns regarding limited domestic supplies following El Niño-related damage to oilseed production, noted Rajesh Patel, managing partner at trader GGN Research in Rajkot.

In response to market conditions, the Indian government cut the basic import duty on crude and refined edible oils—including palm oil, soyoil, and sunflower oil—in September to help lower prices during the peak festive season.

Industry experts anticipate that palm oil imports will likely remain elevated in November because the commodity continues to trade at a discount compared to rival oils, according to Sandeep Bajoria, chief executive of Mumbai-based brokerage Sunvin Group.

India sources the majority of its palm oil from Indonesia and Malaysia, while soyoil and sunflower oil are imported primarily from Argentina, Brazil, Russia, and Ukraine.

"The surge in India's edible oil imports highlights how seasonal demand dynamics directly impact international supply chains and commodity pricing. When festive requirements coincide with domestic supply constraints from weather events like El Niño, market participants must adapt quickly through inventory management and trade adjustments. The strategic use of import duty adjustments by policymakers also plays a critical role in balancing domestic consumer pricing and managing large-scale commodity inflows during peak consumption cycles." — Dr. Shishir Gupta, Founder & CEO, StartupLanes