Palm Oil vs Soybean Oil: Which Is Better?

Palm oil and soybean oil are the two most consumed edible oils in the world. In India, they are the backbone of the processed food industry — found in biscuits, instant noodles, margarine, vanaspati, and most packaged snacks. They are also widely sold as cooking oil under various brand names.

If you are choosing between the two for daily cooking, here is the honest answer: neither is a great choice. But if you must pick one, the comparison is more nuanced than most people realise.

The Fatty Acid Comparison

Understanding the difference starts with the fat composition.

Palm Oil

• Saturated fat: ~50% (primarily palmitic acid)
• Monounsaturated fat (oleic acid): ~40%
• Polyunsaturated fat: ~10%
• Omega-6 to omega-3 ratio: Very high (approximately 46:1)

Palm oil is unusually high in saturated fat for a vegetable oil. Palmitic acid — the dominant saturated fat in palm oil — has been linked in multiple studies to increased LDL (bad) cholesterol and cardiovascular risk when consumed in excess.

Soybean Oil

• Saturated fat: ~15%
• Monounsaturated fat (oleic acid): ~24%
• Polyunsaturated fat: ~61% (primarily omega-6 linoleic acid)
• Omega-6 to omega-3 ratio: Approximately 7:1

Soybean oil is very high in polyunsaturated fat, particularly omega-6 linoleic acid. While omega-6 is an essential fatty acid, the modern Indian diet already has far too much of it relative to omega-3. Excess omega-6 promotes inflammation, which is associated with cardiovascular disease, obesity, and metabolic disorders.

Health Effects: The Research

Palm Oil

The research on palm oil is mixed. Some studies show that the tocotrienols (a form of vitamin E) in unrefined red palm oil have antioxidant and cardioprotective effects. However, the palm oil used in Indian cooking and processed food is almost always refined, bleached, and deodorised (RBD) palm oil — which has had these beneficial compounds removed.

RBD palm oil is essentially a saturated fat delivery system with no meaningful nutritional benefit. Its high palmitic acid content raises LDL cholesterol in most people.

Soybean Oil

Refined soybean oil has a different problem. Its very high omega-6 content, combined with the near-total absence of omega-3 in the refined form, creates a pro-inflammatory fatty acid profile. A 2020 study from UC Riverside found that soybean oil caused more obesity and diabetes in mice than coconut oil or fructose — though this was an animal study and should be interpreted cautiously.

More concerning is the fact that most soybean oil sold in India is partially hydrogenated in some products, creating trans fats. Trans fats are unambiguously harmful — they raise LDL, lower HDL, and increase cardiovascular risk.

Environmental Impact

This is where palm oil is significantly worse.

Palm oil production is the leading driver of deforestation in Southeast Asia, particularly in Indonesia and Malaysia. The destruction of rainforest for palm plantations has caused massive biodiversity loss and is a major contributor to greenhouse gas emissions.

Soybean cultivation also has environmental concerns — particularly in South America — but the scale of destruction is smaller than palm oil.

If environmental impact is a factor in your buying decision, soybean oil is the lesser of two evils. Neither is a sustainable choice compared to traditional Indian oils like mustard, sesame, or groundnut.

Which Is Better for Cooking?

Smoke Point

• Palm oil (refined): ~230 degrees Celsius
• Soybean oil (refined): ~230 degrees Celsius

Both are stable at high temperatures in their refined forms. However, the refining process that creates this stability also removes most nutritional value.

Flavour

Palm oil has a mild, slightly waxy flavour. Soybean oil is almost completely neutral. Neither adds anything meaningful to the flavour of food — which is why they are used in processed food where a neutral fat is desired.

For Indian Home Cooking

Neither palm oil nor soybean oil is a traditional Indian cooking fat. They became dominant in the Indian market in the 1990s and 2000s due to low cost and government import policies — not because they are nutritionally superior to traditional oils.

The Better Alternatives

If you are cooking Indian food at home, there are significantly better options than either palm oil or soybean oil:

Cold-pressed mustard oil — the traditional cooking fat of North India. High smoke point, excellent omega-3 to omega-6 ratio, anti-inflammatory glucosinolates. Ideal for sabzi, tadka, and high-heat cooking.

Cold-pressed groundnut oil — high smoke point, balanced fatty acids, mild flavour. Good for everyday cooking across all Indian cuisines.

Cold-pressed gingelly oil — rich in sesamol and sesamin antioxidants. Ideal for South Indian cooking, tadka, and finishing.

Cold-pressed coconut oil — medium-chain triglycerides that are metabolised differently from long-chain fats. Ideal for Kerala-style cooking and baking.

The Verdict

Factor	Palm Oil	Soybean Oil
Saturated fat	Very high (50%)	Low (15%)
Omega-6 excess	Moderate	Very high
Trans fat risk	Low (unless hydrogenated)	Moderate (if partially hydrogenated)
Environmental impact	Very poor	Poor
Nutritional value (refined)	Minimal	Minimal
Traditional Indian use	None	None

If forced to choose between the two, soybean oil is marginally better for most people — its lower saturated fat content is a meaningful advantage. However, the very high omega-6 content is a real concern for anyone eating a modern Indian diet that already skews heavily toward omega-6.

The honest recommendation is to use neither for daily cooking. Both are industrial oils designed for the food processing industry, not for home cooking. Traditional cold-pressed Indian oils — mustard, sesame, groundnut, coconut — are nutritionally superior, more flavourful, and better suited to Indian cuisine.

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Switch to cold-pressed Indian oils: Dune Aura manufactures cold pressed mustard oil in Gurugram, cold pressed sesame oil, and cold pressed coconut oil — all FSSAI certified, extracted below 45 degrees Celsius, pan-India delivery.

Frequently Asked Questions

Which is healthier - palm oil or soybean oil?

Cold press soybean oil is significantly healthier than palm oil for most purposes. Soybean oil has a much better fatty acid profile (7:1 Omega-6 to Omega-3 ratio versus palm oil's 46:1), contains beneficial phytosterols, and lacks palm oil's high saturated fat content. However, cold press mustard oil is healthier than both for Indian cooking.

Why is soybean oil used so widely in India despite health concerns?

Refined soybean oil is cheap, has a neutral flavour, and has a high smoke point - making it commercially attractive for food manufacturers and restaurants. Its health concerns (high Omega-6 content, processing with chemical solvents, addition of TBHQ) are not well communicated to consumers. Cost and convenience drive its widespread use despite better alternatives being available.

Is cold press soybean oil different from the refined soybean oil in packaged foods?

Yes, dramatically. Cold press soybean oil retains its natural Omega-3 ALA, Vitamin E, phytosterols, and lecithin. The refined soybean oil used in most packaged Indian foods has been processed with hexane solvent, bleached, deodorised, and had synthetic antioxidants added. They share a name but are nutritionally very different products.

What should I use instead of palm oil and refined soybean oil for Indian cooking?

Cold press mustard oil is the best replacement for both palm oil and refined soybean oil in Indian cooking. It has a superior nutritional profile, handles high-heat cooking, and is produced domestically. Cold press sesame oil and groundnut oil are excellent alternatives for medium-heat cooking and South Indian cuisine.

Are there Indian packaged foods that use cold pressed oils instead of palm or soybean oil?

The market for cold press oil-based packaged foods is growing but still small in India. Some premium snack brands and organic food companies use cold press oils. Reading ingredient labels and choosing products that specify "cold pressed mustard oil" or "kachi ghani" helps identify these products.