India's edible oil imports reached their highest level in 10 months at 1.48 million tonnes in July 2026, representing a 33.3% increase from the previous month, according to the Solvent Extractors' Association (SEA). This surge was primarily driven by refiners stepping up purchases of palm oil and soyoil to replenish inventories ahead of the festival season. The July imports comprised 1.48 million tonnes of edible oils and 43,949 tonnes of non-edible oils, with the figures excluding duty-free shipments arriving via land from neighbouring Nepal. As per the Solvent Extractors Association of India (SEA), this marked the highest level since September 2025, highlighting the significant nature of the import surge. The latest developments show Malaysian palm oil futures slipped further, staying below MYR 4,700 per tonne amid weakness in edible oils on international exchanges.
Palm oil imports experienced a dramatic 50% increase to 731,000 metric tons in July, marking the highest level in five months and representing a significant jump from the previous month's 486,000 tons. BV Mehta, Executive Director of SEA, confirmed this increase was primarily driven by an increase in demand for palm oil and soybean oil. India imported 7.30 lakh tonnes of palm oil in July against 4.87 lakh tonnes in June, an increase of 49.89%. The latest market data shows Malaysian palm oil futures slipped further, staying below MYR 4,700 per tonne amid signs of ample supply, with Malaysia's July palm oil inventories rising 3.32% month-on-month to 2.63 million tonnes while production surged 9.41% to 1.79 million tonnes. Despite these supply concerns, India's strong festive-season demand expectations continue to support the market.
Soybean oil imports also experienced a significant 31% increase to 498,900 tons, marking the highest level in seven months and up from the previous month's 380,000 tons. According to SEA data, India's soybean oil imports increased to 4.98 lakh tonnes in July from 3.80 lakh tonnes in June, a growth of 31.05%. Sunflower oil imports also showed growth, rising about 4% to 251,600 tons compared to the previous month. These increases in soybean and sunflower oil imports further contributed to the overall increase in edible oil imports during July 2026. As per the Solvent Extractors Association of India (SEA), sunflower oil imports rose by around 4% in July to 251.6 thousand tons, with Ukraine and Russia, the world's leading sunflower oil exporters, being key suppliers to the Indian market.
Rising edible oil prices are emerging as a fresh risk to India's inflation outlook, with prices up 12-15% over the past year on higher global prices, freight costs and rupee depreciation. Consumer Price Index (CPI)-based inflation rose to 4.45% in July from 4.38% in June, and higher edible oil prices are among the factors economists expect could push inflation higher in the coming months. According to data from the Ministry of Consumer Affairs, the all-India average retail price of sunflower oil rose to ₹189.40 per kg as of 12 August from ₹161.02 a year earlier, while soybean oil increased to ₹164.5 per kg from ₹147.2 and palm oil rose to ₹147.4 per kg from ₹130.5. India imports nearly 60% of its edible oil consumption, with monthly imports typically ranging between 948,000 tonnes and 1.6 million tonnes, making domestic prices highly exposed to external cost pressures.
Industry experts anticipate continued strong demand as India will celebrate a series of festivals between August and November, when demand for edible oils typically peaks. Mumbai-based Sandeep Bajoria, chief executive of Sunvin Group, expects imports to remain strong in August, with palm oil shipments potentially exceeding 700,000 tons. Heavy imports of edible oils are likely to continue through August and September, with palm oil imports expected to cross the 700,000-tonne mark again in August. The increased demand from the world's biggest importer of vegetable oils could help top producers Indonesia, Malaysia and Argentina in bringing down stocks and support benchmark palm oil and soyoil futures. Stronger crude oil prices have added a tailwind, with Middle East supply concerns and uncertainty over a U.S.–Iran peace deal bolstering the broader commodity complex. Export prospects have also improved, with cargo surveyors estimating Malaysian palm oil shipments rose between 2.6% and 14.8% in the first 10 days of August.
