India’s palm oil imports rose sharply in January, reaching a four-month high as refiners increased purchases due to favorable price differences. Lower palm oil prices compared to soyoil encouraged buyers to realign their import strategy.

According to trade estimates, palm oil imports climbed by 51% to around 766,000 metric tonnes, up from 507,000 tonnes in December. This marked the highest monthly intake since October.

Price Advantage Drives Import Shift

Palm oil traded at a discount of over $100 per tonne compared to soyoil during January. This price gap pushed refiners to prioritise palm oil while scaling back purchases of costlier alternatives.

As a result, soyoil imports fell 45% to nearly 280,000 tonnes, the lowest level seen in 19 months. Sunflower oil imports declined 23% to about 269,000 tonnes, reflecting weaker demand.

Overall Edible Oil Imports Edge Lower

Despite the rise in palm oil shipments, India’s total edible oil imports dipped 3.5% month-on-month to 1.32 million tonnes in January. Lower arrivals of soyoil and sunflower oil offset the gains in palm oil volumes.

Industry estimates exclude duty-free land shipments entering through Nepal.

Global Impact and Market Outlook

India remains the world’s largest importer of vegetable oils. Higher palm oil buying could help reduce inventories in key producing regions while influencing global price trends.

Market participants expect palm oil imports to remain firm in February. Demand for soyoil and sunflower oil may stay subdued unless pricing conditions change.Import trends also influence broader agri-commodity dynamics, including Indian rice prices, as edible oil affordability affects household food spending patterns.