• Indian palm oil imports hit 766,000 tonnes in January

• Palm oil trades about $100 per tonne below soybean oil

• Rising Malaysian stocks pressure prices, boosting competitiveness

Palm oil has gained a competitive edge over soybean oil among buyers at the start of the year. According to Reuters data, Indian imports of the world’s most consumed vegetable oil rose to 766,000 tonnes in January, the highest level since October 2025. By contrast, soybean oil imports fell 43% to 280,000 tonnes, the lowest since June 2024.

The shift reflects weaker palm oil prices relative to soybean oil, prompting several Indian refiners to place orders to replenish stocks. Reuters, citing industry sources, said palm oil is currently sold at a discount of about $100 per tonne to soybean oil, reinforcing its status as the cheapest major vegetable oil.

The price weakness is partly due to rising inventories in Malaysia. In the world’s second-largest producer, palm oil stocks rose for a tenth consecutive month in December, driven by higher production.

Market participants expect palm oil’s price advantage to remain in focus in the coming weeks. In India, the world’s most populous country, palm oil accounts for more than 60% of total vegetable oil imports, which average around 14 million tonnes per year.

Volatility in crude oil prices driven by U.S.-Iran tensions, the progress of soybean harvests in Brazil and Argentina, and movements in the ringgit, the benchmark currency for palm oil trade, against the dollar could either erode or bolster palm oil’s competitiveness on the global vegetable oil market.

Palm oil prices fell 9% in 2025 on the Bursa Malaysia Derivatives Exchange, closing the year at 4,050 ringgits ($1,025) per tonne after rising 20% in 2024.

Espoir Olodo