India's edible oil imports reached multi-month highs in October, with palm oil imports surging 6% month-on-month to 866,000 metric tons, marking the highest level since August 2025, according to reports from The Hindu BusinessLine. Soyoil imports hit a record high of 653,000 tons, rising 6% from the previous month, while sunflower oil shipments doubled to 223,000 tons from last month's four-year low. Overall edible oil imports rose 13% to 1.74 million tons, the highest in more than two years, driven by higher shipments of all three oils. As per Reuters, lower prices prompted refiners to step up buying to build stocks ahead of the festive season, with five dealers confirming the surge in purchases.
The surge in imports is attributed to strong festive demand ahead of Diwali, when edible oil consumption typically peaks, as reported by The Hindu BusinessLine. Edible oil imports typically rise during the September-November festive season as households and commercial kitchens increase production of sweets, snacks and fried foods. India will celebrate the Diwali festival this month, when the need for edible oils typically peaks. Demand has been amplified this year by concerns about limited domestic supplies following El Niño-related damage to oilseed production, according to Rajesh Patel, managing partner at trader GGN Research in Gujarat. Traders also cited concern about tighter domestic supplies after weather hurt oilseed output, which encouraged refiners to lock in shipments earlier than usual.
In September, India cut the basic import duty on crude and refined edible oils to bring down prices during the peak festive season, as reported by The Hindu BusinessLine. Palm oil imports are likely to remain elevated in November, as the commodity continues to trade at a discount to rival oils, said Sandeep Bajoria, chief executive of Mumbai-based brokerage Sunvin Group. When India books extra cargoes, it hits the physical market first: inventories in Indonesia and Malaysia get drawn down faster, so available supply for the next few weeks tightens. Dealers think November palm oil arrivals could stay high while palm remains cheaper than rival oils, which would reinforce that near-term support and potentially slow down producer stockpile building.
The higher palm oil imports by the world's largest vegetable oil buyer could curb stock growth in top producers Indonesia and Malaysia, despite higher production, and lend support to benchmark palm oil futures, according to The Hindu BusinessLine. Because much of India's palm oil comes from Indonesia and Malaysia, that pull-forward demand can drain exportable inventories there even if production is rising. The Solvent Extractors' Association of India is due to publish its October import data by mid-November, providing official confirmation of these record-breaking figures. Higher palm oil imports by the world's largest vegetable oil buyer could curb stock growth in top producers Indonesia and Malaysia, despite higher production, and lend support to benchmark palm oil futures.
