Palm oil demand from India and China is rising sharply, according to analyst Thomas Mielke. Purchases are expected to accelerate through January–April 2026, leading to a decline in global stocks. The trend highlights strong consumption in Asia’s largest markets and signals tighter supply conditions in the months ahead.
Global palm oil markets are witnessing renewed momentum as India and China ramp up purchases, according to leading analyst Thomas Mielke. The surge in demand is expected to drive down global palm oil stocks between January and April 2026.
Key Highlights
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Rising Demand: India and China, the world’s top importers, are increasing palm oil purchases to meet domestic consumption needs.
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Stock Decline Forecast: Mielke projects global palm oil inventories will shrink during Q1 2026, tightening supply conditions.
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Consumption Drivers: Strong food industry demand, festive season consumption, and industrial usage are fueling imports.
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Price Outlook: Reduced stocks could support firmer palm oil prices, impacting edible oil markets worldwide.
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Global Impact: The trend underscores Asia’s pivotal role in shaping palm oil trade flows and price dynamics.
Analysts note that the combination of robust demand and declining stocks may create upward pressure on prices, influencing both food inflation and trade balances in importing nations. The developments highlight palm oil’s critical role in global commodity markets and the importance of monitoring supply-demand shifts.
Sources: Reuters, Business Standard, Economic Times