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Palm oil imports drop to 14-month low
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Wednesday, 08 July, 2026, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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Palm oil imports dropped to a 14-month low in June, creating stock build-ups and pricing pressures for major producers like Indonesia and Malaysia, according to the All India Edible Oil Traders Federation.
The decline in buying by the world’s largest vegetable oil importer comes as domestic demand cools and the price gap between palm oil and other edible oils narrows.
According to Shankar Thakkar, president of the All India Edible Oil Traders Federation, trade data shows India’s palm oil imports fell 10.5 per cent month-on-month to 492,000 metric tons in June. This is the lowest import volume seen since April 2025.
The slowdown affected all major edible oils. June shipments of soybean oil dropped 23 per cent to 381,000 tons, while sunflower oil imports fell 17.5 per cent to a three-month low of 244,000 tons. In total, India’s edible oil imports contracted 16.6 per cent month-on-month, falling to 1.1 million tons in June.
"This drop in buying by India will pile up inventories in producing nations. Both Indonesia and Malaysia are feeling the pressure of growing stockpiles, which will likely drive global prices down soon," said Thakkar.
Thakkar noted that domestic supply issues hit local refining and consumption earlier this summer. A severe heat wave across the country, alongside a domestic gas supply squeeze linked to conflicts in West Asia, slowed down industrial operations.
"To protect cooking gas supplies for households, the government had to cut gas distribution to industrial sectors, directly hitting major commercial oil consumers," Thakkar noted.
India buys most of its palm oil from Indonesia and Malaysia, while sourcing soybean and sunflower oils mainly from Argentina, Brazil, Russia, and Ukraine.
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