Palm Oil Imports Set to Rise Further in April as Global Prices Turn Favorable

02-May-2025 06:11 PM

Mumbai. India’s palm oil imports are expected to rise further in April, following a significant 137% jump in March compared to February, reaching approximately 4.25 lakh tonnes. Despite this surge, imports remain well below the historical monthly average of 7.5 lakh tonnes recorded during the 2023–24 marketing season.

From November 2024 to March 2025, India’s average monthly palm oil imports have failed to cross 5 lakh tonnes, primarily due to higher import costs. 

Crude palm oil (CPO) was trading $70–100 per tonne more expensive than crude degummed soybean oil, leading Indian refiners to favor soybean and sunflower oils.

However, changing market dynamics are now supporting palm oil imports. A combination of weak global export demand, increased surplus stocks in Indonesia and Malaysia, and the ongoing peak production season has forced major exporters to lower their offer prices.

As a result, the import cost of CPO has fallen by $50 per tonne, now sitting below soybean oil, reviving Indian refiners' interest.

Improved margins have led to increased buying activity in India, the world’s largest importer of edible oils. The Malaysian BMD Exchange continues to reflect downward pressure on palm oil futures due to these developments.

Additionally, the softening of soy complex prices on the Chicago Board of Trade (CBOT) — amid near-halted U.S. soybean exports to China — is likely to exert continued pressure on palm oil prices going forward.