India’s Palm Oil Imports Fall to Eight Month Low in December

India’s palm oil imports dropped sharply in December 2025, touching their lowest level in eight months. The fall was mainly due to weak seasonal demand and a clear shift by buyers toward other edible oils like soyoil and sunflower oil. Industry data shows that palm oil imports declined by around 20% month on month to about 507,000 metric tonnes, the lowest level since April 2025.

One of the main reasons for this drop is winter demand. Palm oil is a tropical oil that tends to thicken or solidify in colder weather, especially in northern parts of India. During winter months, households, restaurants, and food processors usually reduce palm oil usage because it is less convenient to handle and use. As a result, demand naturally softens every year during this period.

Another key factor behind the decline was a strong shift toward rival edible oils. In December, refiners and importers increased purchases of soyoil and sunflower oil, which are easier to use in colder conditions. Soyoil imports jumped by about 37% to nearly 508,000 tonnes, while sunflower oil imports more than doubled to around 350,000 tonnes, marking a 17-month high. Changes in relative prices and better availability made these oils more attractive compared to palm oil.

Interestingly, even though palm oil imports fell, India’s overall edible oil imports actually rose during the month. Total edible oil imports increased by about 19% to roughly 1.37 million tonnes, a three-month high. This shows that demand for edible oils remained healthy, but buyers simply switched their preference away from palm oil toward other options.

Seasonal patterns played a big role in this trend. Palm oil demand usually weakens in winter, while oils like soyoil and sunflower oil become more competitive. In addition, better availability of domestic edible oils such as groundnut oil and cottonseed oil also reduced dependence on imported palm oil during December.

India’s changing import pattern matters not just domestically but also globally. India is the world’s largest buyer of vegetable oils, so any slowdown in its palm oil imports can affect global markets. Lower demand from India may lead to higher inventories in major producing countries like Indonesia and Malaysia. This, in turn, can put pressure on international palm oil prices, especially Malaysian palm oil futures. At the same time, stronger demand for soyoil and sunflower oil can support prices of those oils in global markets.

Looking ahead, market participants expect palm oil imports to recover in the coming months. By late December and early January, palm oil was trading at a discount compared to soyoil and sunflower oil. This price gap could encourage buyers to return to palm oil once winter demand stabilises and pricing becomes more attractive.

In summary, India’s palm oil imports hit an eight-month low in December due to seasonal weakness and a shift toward alternative edible oils. However, overall edible oil demand remained strong, highlighting that the decline was more about changing preferences than falling consumption. With pricing dynamics improving, palm oil imports are expected to pick up again in the near term, keeping India a key player in the global vegetable oil market.