India’s edible oil imports saw a sharp 33.57% decline in April 2025 compared to April 2024, primarily due to falling demand for palm oil and higher domestic mustard seed processing. According to data from the Solvent Extractors’ Association of India, imports fell to 8.62 lakh tonnes from 13.04 lakh tonnes a year earlier. This drop has been consistent through the first six months of the oil year 2024–25.
Nepal emerged as an unexpected source of edible oil imports. Benefiting from the SAFTA agreement, Nepal exported around 3.5 lakh tonnes of refined oil duty-free to India, while its domestic requirement is only about 4.3 lakh tonnes per year. This surge in re-exports is now threatening Indian refiners, who warn that it’s distorting the market and causing revenue losses for the government due to duty evasion.
While palm oil and sunflower oil imports declined, crude soyabean oil imports increased significantly to 22.72 lakh tonnes between November and April. Indonesia and Malaysia remained the top palm oil suppliers, while Argentina, Brazil, and Russia led in soyabean oil shipments. The shift in trade patterns reflects both global pricing trends and India’s changing domestic consumption and refining strategies.