There is no inherent demand for palm oil. It's just one form of oil albeit a bit cheap.
You think people can smuggle into India at price lower than organized oil sector. It's not like palm oil is completely banned. We'll just route it from another country mostly from Indonesia.
As a matter of Fact, palm oil is one of the most unhealthy oils used for cooking.
If you can afford it, stick to coconut oil or Olive oil.
Even rice oil is better than palm.