India’s palm oil imports declined sharply in March, falling nearly 19% month-on-month to their lowest level in three months, as rising global prices discouraged refiners from making fresh purchases, according to industry data released on Monday.
Data from the Solvent Extractors’ Association of India (SEA) showed that palm oil imports dropped to 689,462 metric tonnes in March, compared to 847,689 tonnes in February. This marks the lowest import level since December 2025, reflecting cautious buying sentiment among domestic refiners amid elevated international prices.
The surge in tropical oil prices, which has been tracking broader strength in global energy markets, has led buyers to adopt a wait-and-watch approach in anticipation of a possible price correction. Industry participants noted that refiners are holding back purchases in the hope that prices may ease in the coming weeks.
Sunflower oil imports jump 35%
Meanwhile, imports of other edible oils showed mixed trends. Soyoil imports registered a modest decline of around 4% to 287,220 tonnes, while sunflower oil imports rose significantly by about 35% to 196,486 tonnes during the same period.
Overall, India’s total edible oil imports fell by more than 9% in March to 1.17 million tonnes, the lowest level since April 2025. The decline was largely driven by reduced shipments of palm oil and soyoil.
India, the world’s largest importer of edible oils, primarily sources palm oil from Indonesia and Malaysia. Soyoil and sunflower oil imports, on the other hand, are mainly sourced from Argentina, Brazil, Russia, and Ukraine.
Market experts indicate that improving domestic availability of rapeseed oil from the new-season crop has also contributed to the slowdown in imports, providing temporary relief to local supplies.
However, the drop in imports could lead to a drawdown in domestic stock levels, potentially supporting local oilseed prices. At the same time, if international prices remain firm and inventories tighten further, India may need to step up imports in the coming months to meet demand.
Industry traders suggest that the pace of future imports will largely depend on global price movements, with refiners expected to return to the market once prices stabilize or correct.