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Informist, Monday, Apr. 27, 2026

MUMBAI - India, one of the world's largest importers of edible oil, is shifting from price-led buying to supply-driven sourcing due to the ongoing war in West Asia. Additionally, climate shock and developments in the energy markets are also contributing to the shift, according to Bhavna Shah, vice-president, Indian Vegetables Oil Producers' Association.

Three forces - weak monsoon, high crude oil prices and strong global biofuel demand - which have tightened edible oil availability, will play out in 2026-27, she said while addressing a seminar in Kyiv, according to a press release.

Sunflower oil will show demand resilience, while supply disruptions, especially in Argentina, may delay soyabean oil shipments, she said. Palm oil shipments will remain strong due to favourable price spreads and India's import basket will be palm heavy as palm retains its cost edge for now, she added. However, post April, soybean and palm oil will compete for India's share with China soybean oil making a notable entry, she said.

Overall, the bias remains slightly bullish as India continues to be supported by efficient supply chain, smart imports and policy interventions as and when needed, Shah said.

She cautioned against edible oil inflation inching up due to weak monsoon, crude oil volatility, fertiliser shortages, gas-linked production constraints and biofuel mandates tightening global palm oil supply. However, India's ability to absorb surpluses will act as a cushion, she said. "India remains a prime destination for any surpluses. The country is seen as a sink that will absorb any kind of surplus wherever in the world it exists."

Discussions on edible oils often focus on demand and supply conditions, but Shah stressed that the edible oil economy must be viewed through the lens of food, feed, and fuel. "With rising biofuel linkages, edible oils are no longer just a food commodity. Fuel price rallies now trigger near-synchronous increases in global edible oil prices due to feedstock diversion."  End

Reported by Abhijit Doshi

Edited by Deepshikha Bhardwaj

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