India soyoil imports to rise to record high on price competitiveness

India’s soyoil imports are poised to reach a record high in the 2025/26 marketing year, industry officials predict, driven by the competitive pricing of soyoil against palm and sunflower oils. Soyoil imports are forecasted to climb 4.2% from last year’s record levels to 5.7 million metric tons, as highlighted by Aashish Acharya, vice president at Patanjali Foods Ltd. This surge in soyoil imports will counterbalance the decline in sunflower oil shipments due to geopolitical tensions and limit palm oil purchases, which currently constitute the majority of India’s edible oil imports.

Palm oil imports are projected to recover from a five-year low, increasing by 5.5% to 8 million tons, while sunflower oil imports are expected to dip by 3% to 2.85 million tons, according to Acharya. Higher incomes and increased demand for edible oils are contributing to the rise in soyoil imports, as India meets nearly two-thirds of its vegetable oil needs through imports, primarily from Malaysia, Indonesia, Argentina, Russia, and Ukraine.

Indonesia’s growing biodiesel consumption has reduced palm oil supplies, pushing prices up, while soyoil has been abundant and competitively priced, according to B.V. Mehta, executive director of the Solvent Extractors’ Association of India. The influx of higher soyoil imports will propel India’s total edible oil imports in 2025/26 by 3.6% to a record high of 16.55 million tons, Mehta added.

As domestic production remains stagnant, rising per capita incomes are fueling higher edible oil demand, leading to a projected fall in palm oil’s share in India’s total edible oil imports below 50% for the second consecutive year in 2025/26, according to trade dealers.