According to five dealers, India's imports of palm oil increased slightly in May from the previous month's four-month low but remained below normal as refiners shifted to rival soyoil as palm's price advantage over rival oils shrank.
The world's largest importer of vegetable oils may buy less palm oil than usual, which might impact benchmark Malaysian palm oil futures and increase supplies in leading exporters Indonesia and Malaysia.Dealer estimates indicated that imports of palm oil increased from 513,403 tonnes in April to 551,000 metric tonnes in May.
Sunflower oil shipments decreased 32.3% to 294,000 tonnes in May, while soy oil imports increased 38% month over month to 497,000 tonnes, the largest in five months.According to the dealers, duty-free shipments coming by land from Nepal are not included in the data.According to the Solvent Extractors' Association of India (SEA), which is scheduled to provide May import figures by mid-June, India's monthly imports of palm oil averaged over 632,000 tonnes for the marketing year that concluded in October 2025.
According to Aashish Acharya, vice president of Patanjali Foods Ltd., a major palm oil importer, India's imports have remained below average as cooking gas shortages reduced demand from eateries and other bulk users.
Popular deep-fried appetisers like chole bhature, which contains chickpeas, and samosas are served in these places.India, the second-largest cooking gas importer in the world, is experiencing its greatest gas crisis in decades as the government boosts the price of commercial cylinders to protect households from shortages while reducing supplies to industry.
According to Rajesh Patel, managing partner at trader GGN Research in Rajkot, a city in the western state of Gujarat, soyoil imports increased in May as the commodity's premium over palm oil shrank to roughly $40 per tonne, increasing its attraction among refiners.
According to Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil broking and consulting firm, palm oil will need to sell at a greater discount to rival soyoil in order to reignite demand.