India's February palm oil imports jump 10% to six-month high

India's palm oil imports rose 10.1% in February to a six-month high, as its widening discount to rival oils prompted refiners to ramp up purchases and cut imports of sunflower oil, according to five dealers.

India's increased imports of palm oil and soyoil could reduce stocks in Indonesia and Malaysia, boosting Malaysian palm oil FCPOc3 and U.S. soyoil futures Boc2.

Palm oil imports rose to 844,000 metric tons last month, the highest since August 2025, up from 766,384 tons in January, according to dealer estimates.

Meanwhile, soyoil imports climbed 8.7% in February from the previous month's 19-month low to 303,000 tons, while sunflower oil shipments plunged 45.3% to 146,000 tons.

India's total edible oil imports in February fell 1.4% from a month earlier to 1.29 million tons due to a sharp drop in sunflower oil purchases, estimates showed.

The estimates exclude duty-free shipments that arrived via land borders from Nepal, the dealers said.

India is estimated to have imported 70,000 tonnes of edible oils, mainly soyoil, from Nepal via the land border in February, said Rajesh Patel, managing partner at edible oil trader GGN Research at Rajkot, Gujarat.

The Solvent Extractors' Association of India is set to publish its February import data by mid-March.

"Palm oil imports rose as it was cheaper than rival oils, and now temperatures are also rising. Refiners have started to build stocks," said Aashish Acharya, vice-president at Patanjali Foods Ltd PAFO.NS, a leading importer of edible oils.

India's palm oil imports typically moderate during the winter months, as the tropical oil solidifies at lower temperatures, limiting its use in northern parts of the country.

Palm oil imports are set to rise further in March, after traders rushed to place orders in recent weeks when it was significantly cheaper than soyoil, Acharya said.

India buys palm oil mainly from Indonesia and Malaysia, and imports soyoil and sunflower oil from Argentina, Brazil, Russia, and Ukraine.

-Rajendra Jadhav/Reuters