Palm oil producers take a closer look at India's ties: Why the world's largest vegetable oil importer matters

Palm oil-producing countries are seeking to strengthen their ties with India as the country remains the world’s largest importer of vegetable oils and an increasingly important market for global producers.

The focus on closer cooperation with India was evident at the 29th edition of GLOBOIL India, held in Mumbai from September 29 to October 1. The three-day conference brought together producers, exporters, importers, refiners, traders and policy makers from major edible oil markets.

The theme of the event — “At the Tipping Point: Energy, Sustainability and the Future of Demand in India” — highlighted the changing dynamics of the Indian edible oil market and the growing importance of palm oil producing countries to India’s security of supply.

Why palm oil producers want stronger Indian ties

The sheer scale of edible oil consumption in India makes it a critical destination for palm oil producing countries.

“India buys more edible oil than any country in the world and every decision made in Kuala Lumpur, Jakarta, Buenos Aires or the Black Sea ends up in the Indian kitchen,” said Aadil Singh, CEO of Tefla’s, which organized GLOBOIL India.

Thus, for manufacturers such as Indonesia and Malaysia, India represents a large and strategically important market. Changes in India’s consumption, import requirements and demand for various edible oils can have a direct impact on global trade flows.

The Malaysia-India relationship has been a particular focus for GLOBOIL. Malaysian Minister for Plantations and Commodities, Yang Berhormat Datuk Seri Dr. Noraini binti Ahmad, spoke at the inaugural session and emphasized the importance of bilateral relations with edible oil.

The industry keynote was delivered by Izzana Salleh, Secretary General of the Council of Palm Oil Producing Countries (CPOPC), while the conference featured perspectives from producers and countries from Indonesia, Malaysia, Russia and other regions.

India is diversifying its edible oil supply

While palm oil remains a key part of India’s edible oil basket, discussions at GLOBOIL also highlighted a broader approach to securing supply.

India imports and consumes a variety of vegetable oils, including palm, soybean and sunflower oils. Business awards at GLOBOIL recognized companies involved in supplying all three varieties to India.

AWL Agri Business won the Diamond Award for the Top Importer of Palm Oil in India and also the Diamond Award for the Top Importer of Soybean Oil. Patanjali Foods won Gold for palm oil imports, while Gemini Edibles & Fats India won Diamond for sunflower oil imports.

This diversification gives India exposure to more global sources of supply, rather than relying solely on one oil or production region.

Biofuels are changing the global palm oil equation

Another reason why producing countries are interested in working with India is the changing use of vegetable oils.

Palm oil is increasingly linked not only to food demand, but also to biofuel policy. GLOBOIL discussions explored the increasing impact of biofuel policies on vegetable oil supplies and the implications for global availability and prices.

This creates a potentially competing demand for palm oil: the same global supply must serve food markets while meeting energy demands.

For a major importer such as India, the development of biofuel policies in producing countries may therefore affect the availability and price of edible oils.

What India does differently

India’s approach is increasingly focused on security of supply, diversification and sustainability, rather than importing edible oil only through the lens of short-term prices.

GLOBOIL’s discussions covered security of supply, international price trends, commodity exchanges and risk management, along with sustainability and traceability.

India’s large and diversified base of importers and refiners also means that companies source different oils from different international suppliers.

Technology is another emerging priority

The Indian edible oil industry is also looking beyond traditional business relationships.

GLOBOIL 2026 discussions included artificial intelligence, new processing technologies, commodity exchanges and risk management, indicating that technology is increasingly becoming part of industry strategy to address supply chains and changing demand.

For producing countries, therefore, deeper cooperation with India involves more than just selling palm oil. Increasingly, this means understanding India’s changing demand, sustainability expectations, security of supply concerns and the technology-driven transformation of the edible oil sector.