India is stockpiling soybean oil to secure cheap supplies

Indian buyers placed large orders for soybean oil from April to July 2026 in anticipation of rising palm oil prices. During this period, traders purchased more than 150,000 tonnes of South American soybean oil per month, according to a December 1 report citing Aashish Acharya, vice president of Patanjali Foods, one of the country’s largest vegetable oil buyers. He added that the order volume was driven by an average discount of $20-$30 per tonne for soybean oil compared to palm oil during this period. Soybean oil typically sells at a premium to palm oil. The increase in orders from India also reflects market expectations that palm oil prices will rise due to plans by Indonesia, the world’s largest producer, to increase the share of palm oil in biofuels starting in the second half of 2026, the report states. “This is a significant supply volume in the coming months, as the market anticipates a palm oil shortage next year due to reduced production and increased consumption following ...