India’s edible oil imports drop over 21% amid 27% palm oil decline; prices may rise

A 27 per cent decline in the import of palm oil led to over 21 per cent drop in edible oil during the first four months of the 2023-24 oil year (October-November).

Data from the Solvent Extractors’ Association of India (SEA) showed that India imported 46.15 lakh tonnes (lt) of edible oil during November 2023-February 2024 against 58.44 lt in the corresponding period a year ago, registering a decline of 21.1 per cent. Edible oil imports declined to 9.67 lt in February 2024 against 10.98 lt a year ago, slipping by 13.50 per cent.

• Read: Edible oil import down 23% in Q1 of 2023-24 oil year

BV Mehta, SEA Executive Director, said the availability of palm oil for edible requirements has come down as the main two producers — Malaysia and Indonesia — are diverting it for biodiesel production. This may increase prices this year, he said.

Palm oil output in Indonesia and Malaysia, which account for a bulk of global production, is likely to either rise marginally in 2024 or decline from last year’s level, as ageing plantations and lack of expansion cap output, he said.

• Read:India imports 164.7 lt of edible oil worth ₹1.38 lakh cr in 2022-23

Total import of palm oil (including refined palm oil and crude palm oil) declined to 30.44 lt during November-February 2023-24 from 36.70 lt in November-February 2022-23. Of this, the total import of crude palm oil (CPO) declined to 22.15 lt in the first four months of the oil year 2023-24 from 28.16 lt in November-February 2022-23. India’s RBD palmolein import dropped to 7.92 lt during November-February 2023-24 from 8.19 lt in the corresponding period of 2022-23.

Soyabean shipments rise

Mehta said that the import of soyabean oil from Argentina increased sharply in February 2024, and the import from Brazil declined due to the growing requirements of the domestic biofuel industry.  However, the overall import of soyabean oil declined during the first four months of the oil year 2023-24 to 6.64 lt against 12.04 lt in the corresponding period of 2022-23.

India imported 9.06 lt of sunflower oil during November-February 2023-24 against 9.69 lt in the corresponding period of the oil year 2022-23. India imported 3.51 lt of crude sunflower oil from Romania, followed by Russia at 3.01 lt, Argentina at 1.45 lt, and Ukraine at 42,990 tonnes.

From November-February 2023-24, Indonesia exported 11.48 lt of CPO and 7.32 lt of RBD palmolein to India, followed by Malaysia at 9.11 lt of CPO and 60,627 tonnes of RBD palmolein. In case of crude soyabean de-gummed oil, India imported 2.90 lt from Argentina, followed by 2.81 lt from Brazil.

Import price

The average CIF import price of RBD palmolein was at $903 tonne in February against $885 a tonne in January, and CPO was at $933 a tonne in February against $911 a tonne in January.

The average CIF import price of crude soyabean oil was at $924 a tonne in February against $939 a tonne in January, and crude sunflower oil was at $920 a tonne against $933 a tonne in January.

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