India's edible oil imports climbed to their highest level in 10 months in July, reaching 1.49 million tons as refiners increased purchases of palm oil and soyoil to replenish inventories ahead of the festival season amid tightening domestic supplies. According to reports from Business Standard, the surge was driven by higher imports of all three major edible oils, with the figures excluding duty-free shipments arriving via land from neighbouring Nepal.
Palm oil imports jumped 50% from a month ago to 733,000 metric tons in July, marking the highest level in five months, as reported by Business Standard. Soyoil imports rose 32% month-on-month to 501,000 tons, the highest in seven months, while sunflower oil shipments edged higher by 4% to 253,000 tons. The Solvent Extractors' Association of India is due to publish July import data by mid-August. Recent market developments show Malaysian palm oil futures strengthened to around MYR 4,650 per tonne, recovering from recent weakness amid softer rival oils and firmer crude oil prices.
Refiners are now rebuilding inventories to meet demand during the upcoming festival season, with India celebrating a series of festivals between August and November when demand for edible oils typically peaks. As reported by Business Standard, Mumbai-based Sandeep Bajoria, chief executive of Sunvin Group, noted that stocks have declined after lower imports over the past few months, but refiners are now rebuilding inventories to meet festival season demand. Recent export data supports this trend, with Malaysian palm oil shipments in July rising between 12.1% and 19.5% from June, according to cargo surveyors.
Soyoil imports are likely to exceed 500,000 metric tons in both August and September since prices are very competitive, according to Rajesh Patel, managing partner at trader GGN Research in Rajkot. Lower domestic crushing of rapeseed and soybeans is boosting demand for imports, as reported by Business Standard. India sources most of its palm oil from Indonesia and Malaysia, while soyoil and sunflower oil are imported mainly from Argentina, Brazil, Russia and Ukraine. The market outlook remains supported by higher biodiesel blending mandates in Indonesia and Malaysia, weather-related risks to Malaysia's 2027 output, and expectations of stronger imports by the world's largest consumer, India, between July and October ahead of the festive season.
