In comparison to the same period previous year, the imports of edible oil—palm, soyabean, and sunflower—dipped by 23% to 3.64 million tonnes (mt) during the first quarter of the 2023–24 oil year (October–September), according to a report released on Monday by the trade association Solvent Extractors’ Association of India (SEA).In comparison to the previous year, the nation imported 1.2 million metric tons of refined and crude edible oil last month, a 28% decrease.With a decrease of 7.64% from the same period last year, the total edible oil stock as of February 1 was 2.64 mt.
According to the SEA, supply constraints, concerns about the state of the world economy, and the possibility of decreased output could cause edible oil prices, which are now low, to rise this year.”As the two main producers, Malaysia and Indonesia, are diverting it for the production of bio-diesel, the availability of palm oil for edible oil requirements has decreased. This could result in an increase in prices this year,” a SEA statement said.
Reduced import duties contributed to the nation’s record 16.47 million metric tons of edible oil imports in the 2022–2023 oil year, a 17% increase year over year. These oils include palm, soy, and sunflower. Of the 24 to 25 mt of edible oil consumed annually, India imports roughly 58% of it.Mustard (40%), soyabean (24%), and groundnut (7%), among others, make up the oils’ portion of the country’s total output. In 2022–2023, 59% of all edible oil imports, including refined and crude palm oil, came from palm oil. Thailand, Malaysia, and Indonesia are the main importers of palm oil.
Sunflower oil and crude soy oil imports were 3 mt and 3.67 mt
Sunflower oil and crude soy oil imports were 3 mt and 3.67 mt, respectively, last year. Argentina and Brazil provided the soybean oil, while Russia and Ukraine provided the sunflower oil.Crude palm oil landing prices (at the Mumbai port), which make up a significant portion of the nation’s imports, fell by 8% to $935/tonne on February 9 from $1,015/tonne the previous year.Crude soybean and sunflower oil landing prices have dropped by 27% and 24%, respectively, to $927 and $920 per tonne.
The industry had warned that the government’s decision to extend the lower import duty structure for palm, soy, and sunflower oils by a year, until March 31, 2025, would have a negative effect on the prices and processing of domestic oilseeds.Imports of crude palm, soyabean, and sunflower oil currently only result in a 5.5% overall tax incidence due to a 5% agri-infra and a 10% education cess.Since February 2023, when global prices began to decline, retail inflation in the oil and fat category has been negative due to significant imports of edible oil.Compared to January 2024, there was a 14.96% decrease in cooking oil inflation.
