At the Multi Commodity Exchange (MCX), the February contract shed Rs 2.60, or 0.57%, to Rs 449.60 per 10 kg in 277 lots.
Prices dropped as speculators offloaded positions.
Globally palm oil dropped ass Europe's worsening debt crisis led to a decline in crude oil from biofuel makers.
On the Malaysia Derivatives Exchange (MDEX), the oil fell 1.2% to $819 a metric tonne.
