India’s total imports of vegetable oils (comprising both edible and non-edible oils) reached 13.65 lakh tons in May 2026, marking an 8 percent year-on-year increase compared to the 12.67 lakh tons imported in May 2025. According to the latest data released by the Solvent Extractors’ Association of India (SEA), the May 2026 inbound shipments included 13.39 lakh tons of edible oils and 26,202 tons of non-edible oils.
The May surge mirrors a broader growth trend across the current oil year. During the first seven months of the 2025–26 oil year (spanning November 2025 to May 2026), cumulative vegetable oil imports reached 93.65 lakh tons. This represents a 12 percent growth from the 83.39 lakh tons recorded during the corresponding period last year.
Price Dynamics and Tariff Adjustments Boost Soybean Oil
On a month-on-month basis, India’s edible oil imports in May 2026 rose by 2.4 percent over April’s 13.07 lakh tons. Industry analysts attribute this sequential growth primarily to increased procurement of crude soybean oil. The price premium of soybean oil over palm oil narrowed significantly during the month, enhancing its market competitiveness and driving higher buying volumes.
In tandem with these market shifts, the Central Government revised its import tariff values effective June 1, 2026. The tariff value for Crude Palm Oil (CPO) was raised to US$1,218 per tonne, and RBD Palm Oil was increased to US$1,222 per tonne. Conversely, the government marginally reduced the tariff value for crude soybean oil, further influencing import preferences.
Refined Palm Oil Imports Plummet Amid Duty Safeguards
A standout feature of the SEA report is the near-total collapse of refined palm oil imports. No shipments of RBD Palmolein were recorded in May 2026. Cumulatively, RBD Palmolein imports for November 2025-May 2026 plummeted to just 47,270 tons, down from 826,800 tons in the previous year’s corresponding period.
This drop reflects the strategic impact of New Zealand and Indian trade policies designed to shield domestic industries. The Indian government’s deliberate maintenance of a high duty differential between crude and refined oils has heavily disincentivized refined imports. Consequently, the import share of refined oil shrank from 16 percent to just 3 percent, while crude oil’s share climbed from 84 percent to 97 percent, successfully boosting domestic refining, local value addition, and employment.
Zero-Duty Imports from Nepal Persist
While direct refined palm oil imports slowed, substantial volumes of refined oils continued to enter India from Nepal. Capitalizing on the zero-duty benefits granted under the South Asian Free Trade Area (SAFTA) agreement, Nepal exported an estimated 60,000 tonnes of refined oils to India in May 2026, following 58,000 tonnes in April. Cumulatively, between November 2025 and March 2026, Nepal sent 280,349 tons of refined oils to India, dominated heavily by refined soybean oil (246,005 tons).
Domestic Stock Inventories Climb
Driven by robust imports and high domestic production of mustard oil, India’s total edible oil inventory rose to 22.13 lakh tons as of June 1, 2026, up by 146,000 tons from May 1. Port stocks stood at a provisional 939,000 tons, while pipeline stocks reached 1,274,000 tons.
Global Supply Mix and Macro Concerns
Geographically, Indonesia (17.2 lakh tons) and Malaysia (17.6 lakh tons) remained India’s primary sources for palm oil. Argentina led soybean oil supplies with 16.4 lakh tons, while Russia, Argentina, and Ukraine served as the primary exporters of sunflower oil.
Despite steady supply lines, Indian refiners face escalating headwinds. Year-on-year commodity prices have surged, with CPO up 22 percent, RBD Palmolein up 23 percent, and soybean oil up 22 percent. Compounding these rising costs is a sharp 12 percent depreciation of the Indian Rupee over the last year, emerging as a major financial concern for domestic importers.