Datetime: 2026-01-13 05:20:24 Visit: 6842
Weak Winter Demand, Rival Oils Push India’s Palm Oil Imports to 8-Month Low
India's palm oil imports dropped to an eight-month low in December, primarily due to weaker winter demand and increased purchases of alternative oils like soybean oil and sunflower oil, according to five dealers.
Key Data Highlights
Palm Oil Imports: Declined 20% month-on-month to 507,000 metric tonnes in December, the lowest since April 2025.
Soybean Oil Imports: Surged 37% to 508,000 tonnes.
Sunflower Oil Imports: More than doubled to 350,000 tonnes, reaching a 17-month high.
Total Edible Oil Imports: Rose 19% month-on-month to 1.37 million tonnes, a three-month high.
Market Implications
Palm Oil Inventories: Reduced imports by India, the world's largest vegetable oil buyer, could increase inventories in top producers Indonesia and Malaysia, pressuring benchmark Malaysian palm oil futures.
Rival Oil Prices: Higher soybean and sunflower oil imports may support US soybean oil futures.
Demand and Supply Context
Winter Demand Weakness: Palm oil demand remains subdued due to seasonal factors and improved availability of domestic oils like groundnut oil, soybean oil, and cottonseed oil.
Import Trends: Palm oil imports typically decline in winter as the tropical oil solidifies at lower temperatures, limiting its use in northern India.
Future Outlook
January Imports: Palm oil imports are expected to rise in January, while soybean and sunflower oil imports may moderate, as palm oil is currently trading at a discount to the two rival oils.
