Indian refiners have started increasing palm oil purchases after a five-month decline, as its price has dropped below that of soybean oil, making it more attractive for imports, four traders told Reuters.
Palm Oil Prices Drop Spurs Increased Imports by India After Five-Month Slump
The decline in palm oil prices has already supported Malaysian futures for the commodity, which had fallen nearly 10% since the beginning of 2025. India, the world’s largest importer of palm oil, is now actively placing new orders to replenish domestic reserves.
“Previously, Indian companies had suspended palm oil purchases due to high prices,” explained Sandeep Bajoria, CEO of brokerage firm Sunvin Group. “Now that palm oil is cheaper than soybean oil, refiners have started placing new orders.”
According to market participants, the price of crude palm oil (CPO) for May delivery to India stands at around $1,050 per tonne (including cost, insurance, and freight), while crude soybean oil is approaching $1,100 per tonne.
Palm oil imports to India declined starting in December 2024, when the price gap between palm and soybean oil exceeded $100 per tonne. From December to March, the country imported 1.57 million tonnes of palm oil, averaging 384,700 tonnes per month. Another shipment of around 350,000 tonnes is expected in April.
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By comparison, during the marketing year that ended in October 2024, India’s average monthly palm oil imports exceeded 750,000 tonnes, according to the Solvent Extractors’ Association of India. Data for April will be published in mid-May.
Imports are expected to rise to over 500,000 tonnes in May, 600,000 tonnes in June, and could return to more than 700,000 tonnes per month from July to September.
“Due to limited imports in recent months, domestic inventories have been significantly depleted,” said Rajesh Patel, managing partner at trading firm GGN Research. “Now refiners are being forced to ramp up purchases to make up for the shortfall.”
India traditionally imports palm oil from Indonesia and Malaysia, while soybean and sunflower oils are sourced from Argentina, Brazil, Russia, and Ukraine.
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