India imports 1.3 million tonnes of edible oils in May as palm oil purchases jump

New Delhi: India's edible oil imports witnessed a moderate recovery in May 2026, driven primarily by a sharp rise in palm oil purchases. However, overall import volumes continued to remain below historical averages as refiners adjusted procurement strategies amid changing price dynamics and ample domestic inventories.

According to industry estimates, the country imported around 1.3 million tonnes of edible oils during May, marking an increase of nearly 7 percent compared with the previous month. The growth was largely supported by stronger palm oil arrivals, which climbed significantly after several months of subdued buying.

Palm oil imports surged to a six-month high as Indian refiners stepped up purchases due to improved price competitiveness against rival soft oils such as soybean and sunflower oil. Market participants noted that attractive discounts on palm oil encouraged buyers to replenish stocks ahead of the festive demand season.

Despite the month-on-month rebound, palm oil imports remained lower than typical levels seen during peak consumption periods. Industry experts attributed the restrained buying to sufficient inventories held by refiners and cautious procurement decisions amid fluctuations in global vegetable oil markets.

Meanwhile, imports of soybean oil and sunflower oil showed mixed trends, reflecting changing price relationships among competing edible oils. The shift in import patterns indicates that refiners are increasingly responding to market economics rather than relying on traditional procurement preferences.

India, the world's largest importer of vegetable oils, depends heavily on overseas supplies to meet domestic demand. The country's edible oil basket is dominated by palm oil sourced mainly from Indonesia and Malaysia, while soybean and sunflower oils are imported from South America, Russia, and the Black Sea region.

Trade analysts believe import volumes could remain volatile in the coming months as buyers closely monitor global production prospects, export policies of major producing nations, and domestic demand trends. Any sustained correction in international prices may encourage higher purchases and support replenishment of inventories.

Industry observers expect palm oil to maintain a larger share of India's edible oil imports in the near term, provided its price advantage over competing oils continues.