India is experiencing a surge in edible oil imports, with unprecedented purchases made by both industries and the government for July delivery. This surge is driven by attractive oil prices and anticipation of potential import duty hikes.

Palm oil is a key focus, with refiners significantly increasing their procurement. This increased demand is expected to deplete stockpiles in major producers Indonesia and Malaysia, potentially bolstering global prices. As the world's largest importer of vegetable oils, India's actions have a significant impact on the global market.

Trade estimates predict a record-breaking 1.92 million metric tons of edible oil imports in July, a substantial 26% increase from the previous month. This compares to a monthly average of 1.2 million tons since November 2023.

Government sources confirm significant oil arrivals, with approximately 1.45 million tons, including 850,000 tons of palm oil, already unloaded at Indian ports.

Palm oil imports are projected to soar by 45% in July compared to June, reaching a 20-month high of 1.14 million metric tons. According to Sandeep Bajoria, CEO of Sunvin Group, favorable oil prices and healthy refining margins in India prompted refiners to increase their July orders.