India's drop in palm oil imports could pressure Malaysian stockpiles, dealers say
Lower palm oil imports by India, the world's biggest buyer of vegetable oils, could lead to a stock buildup in top producers Indonesia and Malaysia and weigh on benchmark Malaysian palm oil futures.
In July, palm oil imports declined by 10 per cent to 858,000 metric tons, down from June's 11-month high, according to estimates from dealers.
Soyoil imports in July surged 38 per cent month-on-month to 495,000 tons, the highest level in three years. The increase was a result of vessels finally discharging their cargo in July after being delayed by congestion at Gujarat's Kandla port in June, they said.
Sunflower oil imports fell 7 per cent to 201,000 tons, dealers estimated.
Higher imports of soyoil lifted India's total edible oil imports in July by 1.5 per cent to 1.53 million tons from a month earlier, the highest level since November, according to dealers' estimates.
The import numbers exclude duty-free shipments that arrived via land borders from Nepal, they said.
After buying less edible oil than usual in the first half of 2025, India is now increasing imports to meet rising demand ahead of the upcoming festive season, said Aashish Acharya, vice president at Patanjali Foods Ltd, a leading importer of edible oils.
In India, edible oil demand, particularly for palm oil, typically rises during the festival season due to increased consumption of sweets and fried foods.
Even in the coming months, imports will remain robust as refiners try to replenish their inventories, said Rajesh Patel, managing partner at GGN Research, an edible oil trader.
India buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Nepal's edible oil imports were 83,000 tons in July, up from 75,000 tons in June, GGN Research estimated. — Reuters
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