Economy

India's Vegetable Oil Imports and Global Market Dynamics

Wednesday, July 15, 2026
5 min read
India's Vegetable Oil Imports and Global Market Dynamics

Modi appealed to citizens back in May 2026. He wanted everyone to partner up to strengthen the nation amid that West Asia crisis. Seven appeals were made. Avoid gold buying, avoid foreign travel for a year. And reduce edible oil consumption. Farmers needed to cut dependence on imported chemical fertilizers too.

That pressure seems to have kicked something into gear with the numbers. India’s vegetable oil imports took a dive in June. They fell by twenty-nine percent year-on-year. Down to eleven point four six lakh tonnes.

The Solvent Extractors’ Association of India the SEA put out some latest figures. It turns out this was the lowest level of edible oil imports since the start of that whole oil year.

Back in June 2025, India had bought sixteen point one six lakh tonnes. But the story isn't just about June. Looking at the first eight months of that 2025-26 oil year November through June the cumulative import actually grew to one hundred five point seven lakh tonnes. It was up from ninety nine point five five lakh tonne a year before. A bit of moderation, maybe?

The drop in June wasn't uniform though. Palm oil imports took the biggest hit. They dropped ten point five percent month-on-month. That brought palm oil imports down to four hundred eighty-seven thousand tonnes. Crude palm oil saw a similar dip: forty-eight eight hundred sixty three tonnes, compared to five hundred forty six thousand four hundred fifty six in May.

Soybean oil also suffered. It dropped twenty-three percent in June. Thirty eight one thousand tonnes imported. That was down from four hundred ninety four thousand in May. The SEA suggested that this happened because the palm oil discount against other oils narrowed, falling below fifty a tonne. A real squeeze.

But not everything went down. Sunflower oil imports actually ticked up slightly. They rose to two hundred forty two thousand eight hundred seventy tonnes in June, up from one hundred ninety five thousand seven hundred twenty six in May. Refined cooking oils? Nil for a second straight month. It’s strange how things shift.

Stocks were also watching this mess. As of July first, total vegetable oil stocks stood at twenty point zero nine lakh tonnes. That’s lower than the twenty two point one six lakh tonne level they had a year earlier. Reflecting those lower June imports.

And there's the trade angle coming in. Nepal is still shipping significant volumes to India. They pay no import duty on Nepalese oil under that SAFTA pact, which makes things flow differently. Between November 2025 and April 2026, Nepal sent about three hundred thirty eight thousand eight hundred fifty four tonnes of refined oils over. Mostly soyoil, sunflower, RBD palmolein, and rapeseed oil. Exports in May were estimated at fifty four thousand tonnes. June was thirty two thousand tonnes. That’s the picture for those specific streams. India relies heavily on imports here. Palm oil mostly comes from Indonesia and Malaysia. Soybean oil? Argentina and Brazil are the main sources. Sunflower oil is a tricky one, coming mainly from Russia and Ukraine. That brings geopolitical disruption right into the equation.

It's just scale, really. India isn't self-sufficient at all. Domestic production covers only about forty-four percent of what the country needs annually. The other fifty six percent? That comes through imports. Edible oil is one of those big agricultural import items.

Looking back at the bigger picture, in FY25, the vegetable oil import bill hit seventeen point three three billion dollars. That’s nearly two-thirds of all that agricultural stuff India brings in about twenty seven billion dollars total. It’s a massive dependency structure you have there.

Written by Gree News Team — Senior Editorial Board

Gree News Team covers international news and global affairs at Gree News. Our collective of senior editors is dedicated to providing independent, accurate, and responsible journalism for a global audience.

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