Surge in palm oil shipments, rising global prices and rupee weakness push India’s import costs sharply higher

India’s edible oil import bill surged nearly 19% during the first half of the 2025–26 oil year, underlining the country’s continuing dependence on overseas supplies amid rising domestic consumption and volatile global commodity markets. According to data released by the Solvent Extractors’ Association of India (SEA), India imported:

• 7.94 million tonnes of vegetable oils

during the November 2025–April 2026 period, compared with:

• 7.04 million tonnes

during the corresponding period last year.

In value terms, the country’s edible oil import bill jumped to approximately:

• ₹87,000 crore

up from:

• ₹73,000 crore

a year earlier, reflecting both higher import volumes and elevated international edible oil prices.

Palm Oil Drives Import Surge

The sharp rise in imports was primarily driven by a substantial increase in palm oil purchases. India’s palm oil imports nearly doubled to:

• 3.97 million tonnes during the first six months of the oil year, compared with:

• 2.74 million tonnes in the year-ago period.

Industry analysts said Indian refiners and traders increased palm oil purchases aggressively due to:

• relatively competitive pricing
• strong supply availability
• lower costs compared with soft oils such as soybean and sunflower oil

Indonesia and Malaysia remained India’s dominant suppliers of palm oil. Palm oil continues to dominate India’s edible oil basket because of:

• widespread household consumption
• extensive usage in food processing and anima feed production
• large-scale use in restaurants and packaged foods
• relatively lower prices versus competing edible oils

Soft Oil Imports Decline

While palm oil imports surged, imports of soft oils declined during the same period. Combined shipments of:

• soybean oil
• sunflower oil

fell to:

• 3.85 million tonnes

from:

• 4.13 million tonnes

a year earlier. Industry participants attributed the decline to:

• higher global soybean oil prices
• elevated sunflower oil prices
• supply disruptions linked to the Black Sea region
• geopolitical volatility affecting freight and insurance costs

Argentina remained India’s largest supplier of soybean oil, followed by:

• Brazil

while sunflower oil imports continued to depend heavily on:

• Russia
• Ukraine.

Global Price Inflation Raises Import Costs

The surge in India’s import bill was also driven by higher international edible oil prices. According to SEA:

• palm oil prices increased by 14–15% year-on-year
• soybean oil and sunflower oil prices rose between 17% and 22%

compared with April 2025 levels.

Industry experts said global edible oil markets continue facing:

• supply-chain disruptions
• geopolitical uncertainty
• freight inflation
• weather-related crop concerns
• biofuel demand pressures

The ongoing West Asia geopolitical crisis has also sharply increased:

• shipping costs
• marine insurance premiums
• freight charges

for edible oil cargoes arriving into India.

Rupee Weakness Adds Further Pressure

The depreciation of the Indian rupee emerged as another major factor inflating import costs. SEA said the rupee weakened by more than 9.2% against the US dollar over the past year, significantly raising landed import costs for refiners and importers.

Industry stakeholders warned that currency volatility remains a major risk for India because the country imports nearly two-thirds of its edible oil requirements.

India’s Structural Dependence on Imported Edible Oils

India remains the world’s largest importer of vegetable oils and one of the world’s biggest cooking oil consumers.

Despite government efforts to boost domestic oilseed production under initiatives focused on:

• mustard
• soybean
• sunflower
• oil palm cultivation

the country continues depending heavily on imports to bridge demand gaps.

Industry analysts estimate India’s total edible oil imports could reach:

• 17 million tonnes or more

during the 2025–26 oil year if current consumption and procurement trends continue.