The spike in costs due to lower discounts on palm oil by Indonesia and Malaysia has reduced edible import volumes by 29% in June.

According to BV Mehta, Executive Director, SEA, the decline in imports last month was primarily driven by a collapse in palm oil demand to 0.48 MT in June 2026 against 0.54 MT in May 2026 and 0.95 MT in June 2025. Mehta attributed the fall in crude palm oil import to lower discounts offered compared to other oil variants like soybean.

According to the Solvent Extractors Association of India (SEA), overall edible oil imports in the current oil year are likely to exceed the 16 million tonne (MT) shipment recorded in the 2024-25 oil year because domestic oilseed production may be impacted by deficient monsoon rains.

In June, 2026, India imported 1.11 MT of edible oils against 1.59 MT in June, 2025.

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Soybean oil imports dropped 23% to 0.38 MT in June from 0.49 MT in May. Palm oil’s discount compared to other oils narrowed to below $50 a tonne, the SEA said. Sunflower oil imports, however, rose to 0.24 MT last month from 0.19 MT in May.

“The drop in Indian buying is a ripple effect of simultaneous biofuel mandates introduced by Indonesia, Malaysia, and the United States. These policies are pulling millions of tonnes of vegetable oils out of the food economy and into the fuel economy, driving up global spot prices,” according to a SEA statement. The country did not import refined cooking oils for a second straight month.

Cooking oil stocks stood at 2 MT as of July 1, a decline from 2.21 MT a year earlier, reflecting the lower June imports.

Out of the total import of 16.01 MT of cooking oils in 2024-25 oil year, the share of palm oil shipments was over 47% while the rest was sunflower and soybean oils. The cooking oil imports in 2024-25 oil years was valued at $ 18.3 billion. Out of the total import of 16.01 MT of cooking oils in the 2024-25 oil year, palm oil shipments accounted for over 47% while the rest was sunflower and soybean oils.

India imports around 57% of its cooking oil requirement. Palm, soybean and sunflower account for the bulk of consumption of around 25 – 26 MT. Share of domestic edible oils includes mustard (40%), soyabean (24%) and groundnut (7%) and others.

The country imports oils from Indonesia, Malaysia, Thailand, Ukraine, Russia and Argentina. India produces oils such as mustard, soybean and groundnut.