India’s Edible Oil Imports Drop 16% in July Amid Higher Duties and Lower Palm Oil Shipments

India’s edible oil imports fell by 16% in July 2025, largely due to a sharp decline in palm oil shipments, according to industry body Solvent Extractors Association of India (SEA). The country imported 15.48 lakh tonnes of edible oils last month, compared to 18.40 lakh tonnes in July 2024.

The government’s decision on 31 May 2025 to raise the import duty gap between crude palm oil and refined palm oil from 8.25% to 19.25% discouraged refined oil imports. As a result, refined palm oil imports collapsed to just 5,000 tonnes in July, against 1.63 lakh tonnes in June 2025 and 1.36 lakh tonnes a year ago.

Crude palm oil imports also dipped to 8.51 lakh tonnes, from 9.37 lakh tonnes last year. India mainly sources palm oil from Malaysia and Indonesia. Imports of crude sunflower oil likewise fell to 2 lakh tonnes, compared with 3.67 lakh tonnes in July 2024.

Imports of non-edible oils declined as well, to 31,000 tonnes from 55,014 tonnes in July 2024. Overall, total vegetable oil imports (edible and non-edible combined) slipped 17% to 15.79 lakh tonnes, compared to 18.95 lakh tonnes last year.

Meanwhile, soybean cultivation in India has also shrunk this Kharif season. According to the Soybean Processors Association of India (SOPA), the sown area is 115 lakh hectares, down from 118.32 lakh hectares in 2024. State-wise cultivation includes Madhya Pradesh (48.64 lakh ha), Maharashtra (48.20 lakh ha), Rajasthan (9 lakh ha), Karnataka (4.22 lakh ha), and Gujarat (2.53 lakh ha).

Currently, the soybean crop is considered normal, but production will depend heavily on weather conditions over the next two months. The government has fixed the minimum support price (MSP) for soybean at ₹5,328 per quintal for the season.