India’s edible oil imports in February declined to its lowest level since May, 2020, to 0.89 million tonne (MT), a fall of 8% compared to February, 2024, due to sharp fall in palm oil imports.
However, in the first four months of oil years 2024-25 (November – February), cooking oil import rose to 4.8 MT, up by 4% compared to the same period of previous oil year – 2023-24, the Solvent Extractors’ Association of India (SEA) stated on Tuesday.
The decline in imports has been cushioned by high stock levels accumulated in the country at the start of the current oil year on November 1, 2024. “However, with stocks depleted to 1.87 MT on March 1, SEA expects a rise in purchases, particularly of palm oil.
SEA has also noted that the exports of refined soybean oil to India from Nepal, taking advantage of duty-free access have increased. Similarly, exports of vanaspati from Nepal and Sri Lanka to India have also picked up recently.
Over the past few weeks, crude palm oil prices have strengthened slightly relative to landing costs in the Indian market. “However, weak price competitiveness in the global market may limit Indian palm oil imports in the near term,” processors of edible oils stated.
During the November-February (2024-25 oil year), palm oil imports dropped by 34% to 1.99 MT, from 3.03 MT in the November-February period of 2023-24. During the same period import of soft oils – soybean and sunflower rose by 70% to 2.67 MT from 1.57 MT in the previous oil year.
Correspondingly, the share of palm in total cooking oils imports declined to 43% from 66% while the share of soft oils in total imports rose to 57% from 34%.
While projecting that the growth in vegetable oil consumption is expected to slow down in 2024-25 oil year, trade body has stated “the high price premium on palm oil has reduced both imports and consumption in recent months, leading to a sharp increase in the consumption of soybean oil and sunflower oil,”.
Cooking oil imports in 2023-24 oil year had declined marginally by 3% to 15.96 MT compared to previous oil year because of increase in domestic oil seeds output and decline in demand because of higher prices.
India imports around 58% of its edible oils – palk, soybean and sunflower consumption of around 25 MT.
India major imports crude palm oils from Malaysia and Indonesia while soybean and sunflower oils are imported by Argentina, Brazil, Russia and Ukraine.
