He said that supply sources are already diversifying as producers compete for access to the Indian market. Earlier, palm oil imports were concentrated in Southeast Asia, but now additional origins are emerging as exporters respond to demand patterns.
The recent spike in imports was largely opportunistic rather than structural. Bhan explained that a sharp price gap made palm oil far cheaper than alternatives.
On the February buying surge, he said, “There was a price differential of $100… India basically took the advantage of this price differential and bought bigger volumes.” Aggressive Indonesian selling and lower levies also supported purchases, and shipments in February could approach one million tonne. However, he cautioned that the momentum may not last, adding, “March will not see those kinds of numbers.”
Also Read: Patanjali Foods sees 15% growth in home care, 8-10% in foods portfolioGoing forward, he said India’s edible oil mix will be determined almost entirely by relative pricing between palm oil and soybean oil rather than consumption preferences.
On substitution dynamics, Bhan said, “If palm oil drops $50 to $100 against soybean oil, we’ll see more palm oil coming up,” while parity pricing would push refiners toward soybean oil instead.
On prices, he expected the markets to remain broadly stable but sensitive to global developments. “Pricing… looks like we are trading in a very narrow range,” he said, though geopolitics and biofuel policy decisions — particularly in the US — could move prices in either direction.
For the entire interview, watch the accompanying video
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