India's palm oil imports marked an increase of 3% in June 2024 compared to the month before, which is the highest rise for the last six months. The accumulated imports have managed to increase by 788,000 metric tons, approximately. It is suggested that the growth was driven by refiners eager to prepare for the soon-to-come festivals. Not only that, palm oil has recently gained an edge over both​ soy oil and​ sunflower oil. This has been due to the competitive pricing of the palm oil variety​.

The drop in the cost of palm oil has become a desirable option for buyers in India. Sandeep Bajoria, the CEO of Sunvin Group, stated that the cost of palm oil was almost $80 per ton less than what other oils used to be, and therefore, that was one of the reasons for its high demand. Furthermore, it is anticipated that this behavior will persist, given the news of slightly higher imports in the following months​.

Growing Dependence on Imported Vegetable Oils

The dependence of India on imported vegetable oils is quite high, as the country mainly sources its palm oil imports from Indonesia, Malaysia, and Thailand. This dependence further highlights the role of palm oil in fulfilling the domestic demand for edible oils. In Conjunction with palm oil, sunflower oil imports also jumped significantly, with a 14% increase in the quantity to 467,000 tons in June. However, the decrease is significant​.

The overall growth of vegetable oil imports as a whole, however, points at the market dynamics in India, whose scene is subject to the likes of some factors, among them pricing and the nature of the market according to the changing season. The total imports of vegetable oils in India went up by 2% to 1.53 million tons, the highest in ten months. This leap in imports not only backs the producers of the major exporting countries but also reshapes the global values and attracts different means of trade​.

The ongoing growth of India's palm oil imports underlines the essential position occupied by this product in the domestic oil market of this country. Being one of the world's largest buyers of vegetable oils, India's trade patterns receive attention from the world market. The affordability and availability of palm oil are among the main factors generating success for India's food industry, influencing even the cooking oil prices and the overall inflation rates​.