Multiple Factors Impacting the Global Vegetable Oil Market

09-Jul-2026 06:21 PM

Shanghai: Sudhakar Rao Desai, President of the Indian Vegetable Oil Producers Association (IVPA), has stated that the global vegetable oil industry is entering a new phase where policy decisions, energy markets, climate change, and geopolitical events could have a profound impact.

These factors will also influence supply and prices. Addressing the China International Cereals and Oils Conference (CCOC 17) in Shanghai—China's premier commercial hub—Mr. Desai noted that the influence of global events and factors on vegetable oil production, trade flows, and price determination is rapidly increasing.

According to the Association's President, global production of the four major edible oils is projected to rise by 3.1% to 212.5 million tonnes in the 2025-26 marketing season, while global consumption is expected to grow by 1.9% to 211 million tonnes.

Thus, although the global edible oil supply situation is expected to remain relatively comfortable, the market's direction will be driven by policy decisions in importing and exporting regions, alongside other factors. He has estimated palm oil production at 19.8 million tonnes for Malaysia and 49.3 million tonnes for Indonesia.