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Imports decline as production of palm oil and oilseeds goes up in India
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Wednesday, 24 December, 2025, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The latest trade figures for the month of November show that edible oil imports into India were not only lower than the previous month but also registered a significant decline compared to the same period last year, resulting in a significant shift that has been observed in the edible oil market in recent months. As per experts, increased production of palm oil and other domestic oilseeds in India, coupled with inflation, import duties, and international market dynamics, has transformed the landscape of India's edible oil imports.
According to Shankar Thakkar, president, All India Edible Oil Federation, in November alone, India's vegetable oil imports decreased by approximately 11 percent month-on-month, while registering a sharp decline of 28 percent year-on-year. The biggest reason for this decline is the near-zero import of palm oil. Imports of palm oil fell to just 3,500 tons in November, a significantly lower figure compared to the previous year.
"Besides palm oil, imports of crude sunflower oil and degummed soybean oil also decreased in November. However, there was a slight increase in the import of crude palm oil during this period. Overall, a clear decline was observed in the imports of sunflower and soybean oils," said Thakkar.
Further, experts observed that the impact of reduced imports is clearly visible in the country's edible oil stocks. As of December 1, the total stock of edible oil had decreased to approximately 1.62 million tons, compared to 1.73 million tons on November 1. Crude palm oil constitutes the largest share of this stock. Palm kernel oil, RBD palm oil, degummed soybean oil, crude sunflower oil, and mustard oil are also included in this stock.
While the total import of the palm oil group was lower than last year, its share in total vegetable oil imports increased. This is because the import of soft oils declined at a faster rate.
Thakkar added that the impact of the Central Government's decision in June to reduce the effective import duty on crude edible oils to 16.5 percent and maintain the duty on refined oils at 37.75 percent is now clearly visible.
"This has led companies to increase imports of crude oil instead of refined oil, in order to boost domestic refining. Overall, the decline in edible oil imports in November indicates that the impact of government policies and global conditions is now becoming visible in the market. Furthermore, the positive effects of the Indian government's schemes to increase oilseed production are also clearly evident," said Thakkar.
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