Indian Refiners Cautious Regarding Edible Oil Procurement

24-Mar-2026 09:05 PM

Mumbai: Due to the crisis stemming from the conflict between Iran and the US, global market prices for palm oil, soybean oil, and sunflower oil have surged; in light of this, Indian refiners have adopted a cautious stance.

They anticipate that this upward trend in prices will not be sustained for long and are, therefore, curtailing their purchases. Instead, refiners may endeavor to increase their procurement of edible oils from domestic sources, thereby offering some relief to local oilseed growers.

According to industry analysts, India is the world's leading importer of edible oils. A reduction in its procurement could potentially lead to a softening of global market prices for palm oil and soybean oil. Conversely, this scenario could prove beneficial for the domestic crushing and processing industry, as well as for oilseed-producing farmers.

At the beginning of the current month, palm oil futures prices climbed to a one-year high, driven by the expectation that the ongoing crisis in the Middle East—and the consequent rise in crude oil prices—could further exacerbate the situation.

A leading importer notes that there is no need to rush into purchasing edible oils, as ample stocks are available in the global market; furthermore, prices could witness a sharp decline once the conflict involving Iran subsides.

During the 2024-25 marketing season (November–October), India imported an average of 1.36 million tonnes of edible oil per month. In March 2026, edible oil imports are projected to contract to approximately 1.1 million tonnes, a figure likely to include around 680,000 tonnes of palm oil.