India's palm oil imports rose 11% to a six-month high.
In February 2026, India recorded palm oil imports of 847,689 tonnes thanks to competitive prices, prompting refineries to increase purchases and adjust their vegetable oil portfolios.
According to the latest data from the Solvent Extractors Association of India (SEA), the country's palm oil imports in February 2026 increased by 11% compared to the previous month, reaching 847,689 tonnes. This is the highest import level since August 2025, indicating a strong shift by domestic refiners towards this price-advantaged commodity.
Trends in the Indian vegetable oil market
The increase in palm oil imports is primarily due to its superior price competitiveness compared to sunflower and soybean oil. Specifically, in February 2026, palm oil imports increased significantly from 766,384 tons in January 2026. Conversely, sunflower oil imports saw a sharp decline of 45%, falling to only 145,308 tons.
For soybean oil, although imports reached 299,046 tonnes (up 7% compared to January 2026), this was still recorded as one of the lowest levels in the past 19 months. India's total vegetable oil imports in February decreased slightly by 2%, to 1.32 million tonnes.
| Vegetable oil | Imports in February 2026 (tons) | Change compared to the previous month |
|---|---|---|
| Palm oil | 847,689 | An 11% increase |
| Soybean oil | 299,046 | A 7% increase |
| Sunflower oil | 145,308 | 45% off |
| Total | 1,320,000 | 2% discount |
Logistical causes and pressures
Market experts believe that India's preference for palm oil is not only due to its low price but also to concerns about the supply chain. Conflicts in the Middle East, along with security risks in the Red Sea and the Suez Canal, threaten to disrupt the supply of soybean and sunflower oil from traditional markets such as Russia, Ukraine, Argentina, and Brazil.
Rising shipping costs are leading Indian importers to prioritize goods that can be delivered quickly from closer suppliers such as Indonesia and Malaysia. SEA warns that tensions on key shipping lanes could continue to tighten supply and drive up logistics costs in the coming period.
Forecast of trends for March 2026
Although palm oil is currently dominant, analysts forecast that imports in March 2026 may be revised down to around 800,000 tons. This is due to the rapidly narrowing price gap between palm oil and soybean oil.
A month ago, palm oil was about $100/ton cheaper than soybean oil; now, that difference is only about $20/ton. This change may prompt refineries to rebalance their import ratios between different types of oil. Furthermore, India's increased palm oil purchases are expected to reduce inventories in Indonesia and Malaysia, providing support for vegetable oil prices on international exchanges such as those in Malaysia and the US.
