India’s dependence on imported edible oils deepened significantly during the first half of the 2025–26 oil marketing year, with the country’s vegetable oil import bill soaring to nearly ₹87,000 crore amid rising global prices, a weakening rupee, and sharply higher palm oil purchases.
According to fresh industry data released by the Solvent Extractors’ Association of India, India imported 7.94 million tonnes of vegetable oils between November 2025 and April 2026, marking a 13% increase compared to 7.04 million tonnes imported during the same period last year.
The sharp increase reinforces India’s continued reliance on overseas edible oil supplies despite ongoing efforts to boost domestic oilseed production under the government’s edible oil self-sufficiency initiatives.
Import Bill Climbs Faster Than Volumes
While import volumes recorded healthy growth, the overall import bill increased at an even faster pace due to elevated global edible oil prices and rupee depreciation.
Industry estimates showed that India’s vegetable oil imports during the six-month period were valued at nearly ₹87,000 crore, compared to around ₹73,000 crore during the same period of the previous oil year — representing a sharp 19% increase year-on-year.
Analysts say the combination of
- Higher international edible oil prices
- A weaker Indian rupee
- Rising freight and refining costs
- Increased palm oil demand
has significantly increased the financial burden on importers and refiners.
India follows an oil marketing year from November to October.
Palm Oil Imports Witness Massive Jump
One of the biggest highlights of the latest import data was the sharp rise in palm oil shipments.
Palm oil imports surged to 3.97 million tonnes during the first half of the oil year, nearly doubling from 2.74 million tonnes recorded a year earlier.
The jump comes as refiners increase palm oil purchases due to its relatively competitive pricing compared to other soft oils.
Key Drivers Behind Higher Palm Oil Imports
- Competitive pricing compared to soybean and sunflower oil
- Strong demand from food processing companies
- Increased consumption in hotels and restaurants
- Better availability from Indonesia and Malaysia
- Supply disruptions in competing edible oils
Malaysia and Indonesia remained India’s largest palm oil suppliers during the period.
Industry experts noted that palm oil regained pricing advantage in recent months after earlier supply disruptions and export restrictions had temporarily increased costs.
Soft Oil Imports Decline
In contrast to palm oil, imports of soft oils such as sunflower oil and soybean oil declined during the six-month period.
Combined imports of soft oils fell to 3.85 million tonnes compared to 4.13 million tonnes in the previous year.
Country-Wise Supply Trends
- Russia and Ukraine remained the largest sunflower-oil suppliers
- Argentina continued as the leading soybean oil exporter to India
- Brazil followed Argentina in soybean-oil shipments
Global supply fluctuations, geopolitical uncertainty, and changing price dynamics influenced buying patterns in the international edible oil market.
Global Prices Continue to Rise
The edible oil market remained volatile throughout the first half of the oil year.
According to industry estimates:
- Soybean oil prices increased 17% to 22%
- Sunflower oil prices also rose 17% to 22%
- Palm oil prices climbed 14% to 15% compared to April 2025 levels
The rise in international prices directly impacted Indian import costs because the country relies heavily on imported edible oils to meet domestic demand.
India imports nearly 55% to 60% of its edible oil requirements annually, making it highly sensitive to global commodity price fluctuations.
Weak Rupee Adds Pressure on Import Costs
The weakening Indian rupee emerged as another major factor behind the rising import bill.
Industry data showed that the rupee depreciated more than 9.2% against the US dollar over the past year, significantly increasing the landed cost of imported edible oils.
Since edible oil imports are primarily priced in dollars, every decline in the rupee raises procurement costs for refiners and importers.
Analysts believe continued currency volatility could further pressure edible oil prices in the domestic market if global prices remain elevated.
Nepal’s Refined Oil Exports to India Rise
Interestingly, Nepal also emerged as an important supplier during the period.
The country exported approximately 217,000 tonnes of refined edible oils to India during the first half of the oil year.
The shipments included:
- Refined soybean oil
- Sunflower oil
- RBD palmolein
- Rapeseed oil
Most of the cargo consisted of refined soybean oil.
Trade experts say Nepal’s exports benefited from regional trade agreements and refining advantages.
Domestic Vegetable Oil Stocks Improve Significantly
Despite rising imports, India’s domestic edible oil availability improved substantially during the period.
Total vegetable oil stocks increased sharply from 1.35 million tonnes in May 2025 to 2.12 million tonnes in May 2026.
The increase in inventories is expected to support domestic supply stability during the second half of the oil year and may help contain excessive price volatility in the retail market.
Improved Stock Position Could Help:
- Stabilize edible oil prices
- Ensure adequate festival season supply
- Reduce panic buying pressure
- Support food inflation management
- Improve refining sector confidence
What This Means for Indian Consumers
The surge in import costs may continue influencing retail cooking oil prices across India, especially if crude oil prices, global commodity markets, and currency weakness persist.
Although domestic stock levels have improved, industry experts warn that any fresh disruption in global edible oil supply chains could quickly impact prices in the Indian market.
Consumers may continue witnessing volatility in prices of:
- Palm oil
- Sunflower oil
- Soybean oil
- Blended cooking oils
during the coming months.
Outlook for the Second Half of the Oil Year
Going forward, market participants will closely monitor:
- Monsoon performance in India
- Global edible oil prices
- Indonesia and Malaysia export policies
- Russia-Ukraine supply conditions
- Currency movement of the rupee
- Domestic oilseed production
Industry experts believe India’s edible oil import dependence is likely to remain high in the near term despite government efforts to boost local oilseed cultivation.
However, stronger domestic inventories and improved supply availability could provide some stability to the market in the second half of the oil year.
