India’s edible oil imports declined in March when compared to February due to lower demand.

Data compiled by the Solvent Extractors’ Association of India (SEA) showed that India imported 11.73 lakh tonnes (lt) of edible oils in March compared to 12.92 lt in February, a decline of 9.20 per cent.

BV Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA), said the decline in March suggests a clear demand correction driven by high international prices, rupee depreciation, and comfortable domestic availability, particularly from the mustard crop.

However, India’s edible oil imports increased by 8.80 per cent during the first five months of the oil year 2025-26 (November-October). India imported 64.52 lt of edible oils during November-March of the oil year 2025-26 against 59.30 lt in the corresponding period of 2024-25.

The import data for November-March 2025-26 indicates continued structural dependence on global supplies.

Front loading by importers

He said the sharp rise in imports between December and February points to front-loading by importers amid concerns over global supply disruptions, especially due to the ongoing Russia-Ukraine conflict affecting sunflower oil, supply-side uncertainties in Southeast Asia for palm oil, and elevated freight costs linked to West Asia tensions.

Additionally, strong global demand, including diversion toward biofuels in major producing countries, has kept prices firm, prompting Indian refiners to adopt a cautious ‘wait-and-watch’ approach.

“Going forward, imports are likely to remain subdued in the short term unless global prices soften or currency conditions improve, while in the longer term, India may continue balancing imports with increased focus on domestic oilseed production and diversification of sourcing to mitigate geopolitical risks,” he said.

While comparing the current price level with March 2025 prices, he said the prices of palm oil rose between $50 and $75 a tonne. Prices of soybean oil and sunflower oil jumped between $190 and $200 a tonne. Rupee deprecated by over 7.2 per cent in last one year, a cause of concern to Indian importers and refiners.

Palm oil rises

Total palm oil imports (including RBD palmolein and crude palm oil) increased to 34.49 lt during November-March 2025-26 against 24.22 lt in the corresponding period of the previous oil year. During November-March 2025-26, India imported 33.98 lt (17.23 lt in November-March 2024-25) of crude palm oil (CPO) and 38,240 tonnes (6.69 lt) of RBD palmolein.

During the first five months of the oil year 2025-26, India imported 11.01 lt (13.12 lt) of curde sunflower oil and 12,123 tonnes (31543 tonnes) of refined sunflower oil.

India imported 17.40 lt (19.11 lt) of crude soybean (de-gummed) oil and 1.42 lt (2.51 lt) of refined soybean oil during November-December of 2025-26.

Mehta said India’s refined oil imports declined to 1.92 lt during the first five months of 2025-26 from 9.52 lt in the corresponding period of 2024-25. The ratio of refined oil sharply decreased to 3 per cent from 16 per cent, while crude oil ratio is increased to 97 per cent from 84 per cent a year ago due to rise in import of CPO.

Import dependence

Mehta said the country-wise import data highlights India’s high dependence on a few key geographies and oils, with Indonesia and Malaysia dominating crude palm oil supplies, reinforcing India’s structural reliance on Southeast Asia for its primary edible oil needs.

At the same time, Argentina and Brazil remain the backbone for soybean oil imports, while Russia and Ukraine continue to be critical suppliers of sunflower oil, despite ongoing geopolitical tensions in the Black Sea region.

“This concentration exposes India to significant geopolitical and supply-side risks -- any disruption such as future export restrictions by Indonesia, biodiesel mandates, or escalation in the Russia-Ukraine conflict can directly impact availability and prices in India. The emergence of Nepal as a re-export hub for refined oils, places India at a disadvantage by potentially undermining domestic refining capacity and leading to revenue leakage,” he said.

Overall, the data underscores a globally interconnected supply chain, where India’s edible oil security is influenced by climate conditions in South America, policy decisions in Southeast Asia, and geopolitical stability in Europe and West Asia. Going forward, diversification of sourcing and boosting domestic oilseed production will be crucial to reduce vulnerability and ensure price stability, he added.

Published on April 13, 2026