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India’s Palm Oil Imports Fell 10% in July 2025 While Soyoil Shipments Rose 38% to Three-Year High.

Economy Business | Dated: 05 Aug 2025

In July 2025, India’s palm oil imports dropped by 10% to 858,000 metric tonnes, largely due to contract cancellations. Meanwhile, soyoil imports surged 38% to 495,000 tonnes, the highest monthly level in three years, driven by delayed shipments and competitive pricing.

🎯 Key Highlights:

  • - Indian refiners cancelled approximately 65,000 tonnes of palm oil contracts for deliveries between July and September, citing a sharp price rally in benchmark Malaysian palm oil futures. This led to a 10% decline in imports from June levels.
  • - Soyoil imports climbed 38% month-on-month, reaching 495,000 metric tonnes in July—the highest volume in three years. This surge was fueled by competitive CIF prices and the discharge of previously delayed shipments from June.

💡 Other Important Facts:

  • (i) The shift from palm oil to soyoil reflects refiners’ response to global price dynamics: palm oil became relatively expensive, while soyoil commanded attention due to its lower landed cost. This changed the edible oil import mix significantly in favor of soyoil.
  • (ii) Although palm oil imports had reached an 11‑month high just a month prior, low inventory and seasonal demand prompted refiners to cancel contracts and pivot. The refilling of stocks via soyoil imports also contributed to India’s edible oil intake rising slightly overall in July.
  • (iii) The decline in India’s palm oil purchases added pressure on Malaysian and Indonesian exporters, potentially leading to inventory build-up. Meanwhile, the surge in soyoil imports supported U.S. soyoil prices. Analysts expect palm oil demand to rebound as price gaps narrow in coming months.

📚 Test Your Knowledge:

Recently, by what percentage did India’s palm oil imports decline in July 2025 compared to the previous month?

Correct Answer: 10%

🚀 Quick Recap: