India’s demand for palm oil roared back to life in May 2025, with imports skyrocketing 87% compared to April, hitting 600,000 metric tons — the highest monthly volume since November 2024.
The reason? Lower inventories at home and palm oil’s newly regained price edge over soy and sunflower oils,prompting Indian refiners to ramp up their buying sharply.
This surge could have ripple effects beyond India — possibly boosting Malaysian palm oil prices and supporting U.S. soy oil futures, say market watchers.
Why the Sudden Spike?
- Palm oil turned cheaper than soy oil after months of trading at a premium.
- Part of Odisha’s plan to become a global agri-export hub
- Competitive pricing brought Indian buyers back to palm oil in a big way.
“Palm oil’s discount changed everything — buyers have switched back fast,” says Rajesh Patel of GGN Research.
Other Edible Oil Movements
- Soy oil imports climbed 10% month-on-month to 398,000 tons — the highest since January.
- Sunflower oil imports inched up 2% to 184,000 tons.
Combined, these lifted India’s total edible oil imports by 37% to 1.18 million tons in May — the highest volume since December 2024.
Key Highlights at a Glance
- Palm Oil Imports: 600,000 tons (+87%) — 6-month high
- Soy Oil Imports: 398,000 tons (+10%) — 5-month high
- Sunflower Oil Imports: 184,000 tons (+2%)
- Total Edible Oil Imports: 1.18 million tons (+37%) — highest since Dec 2024
- India’s Edible Oil Stocks: Down to 1.35 million tons — lowest since July 2020