El Niño Threatens Oilseed and Palm Oil Crops in India and Southeast Asia
El Niño Threatens Oilseed and Palm Oil Crops in India and Southeast Asia
India · Published Oct 2, 2026
• The ongoing El Niño weather pattern is causing significant disruptions to monsoon rains across India, Malaysia, Thailand, and Indonesia.
• This has led to reduced rainfall, which is negatively impacting oilseed and palm oil crops in these regions.

Impact & Risks

The lack of adequate monsoon rains is expected to reduce palm oil and oilseed production, leading to tighter global supplies. India, the world's second-largest sugar producer, may face additional challenges, including potential import requirements for sugar. The reduced output could drive up prices for palm oil, soybean oil, and sugar, impacting both domestic and international markets. This situation poses risks to farmers, consumers, and industries reliant on these commodities.

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