India's Palm Oil Import Slump in April: A Ripple Effect

India's palm oil imports declined significantly by 27% in April, hitting a one-year low, according to five dealers. Institutional buyers' sluggish demand and recent price surges eroded the palm oil's discount compared to other oils, causing refiners to cut back on purchases. This trend could encourage stockpiling by leading producers Indonesia and Malaysia, impacting benchmark Malaysian palm oil futures.

In April, India's palm oil imports fell to 505,000 metric tons, starkly lower than the previous month's 689,462 tons. Meanwhile, soyoil imports rose 24% month-on-month to 355,000 tons, marking a four-month high, and sunflower oil shipments more than doubled to 435,000 tons. Overall, India's edible oil imports rose by 10.4% month-on-month, reaching 1.3 million tons—the highest since January 2026.

Excluding duty-free shipments from Nepal, the domestically available data points to gas shortages affecting restaurants, thus reducing palm oil consumption. This was highlighted by Sandeep Bajoria, CEO of Sunvin Group. Moreover, as the government prioritizes household cooking gas, the commercial sector faces declines. At the same time, impending disruptions linked to the Iran war have led Indian buyers to increase sunflower oil imports, according to Rajesh Patel of GGN Research.

(With inputs from agencies.)