India’s vegetable oil imports witnessed a 13 per cent year-on-year (YoY) decline in February 2024, reaching nearly 9.75 lakh tonne, according to data released by the solvent extractors’ association of India (SEA). This decrease follows a similar trend observed in January 2024.
The SEA reported that total vegetable oil imports, which encompass both edible and non-edible oils, stood at 9,74,85 tonne in February 2024, compared to 11,14,481 tonne in the same month of the previous year. Edible oil imports mirrored this decline, falling to 9,67,852 tonne from 10,98,475 tonne. Non-edible oil imports also dipped significantly, reaching 7,000 tonnes in February 2024 from 16,006 tonne in February 2023.
Additionally, this downward trend extends to the first four months of the 2023-24 oil marketing year (November to October). Overall vegetable oil imports during this period decreased by 21 per cent to 46,47,963 tonne, compared to 58,87,900 tonne in the corresponding period of the prior year. Similarly, edible oil imports fell to 46,15,551 tonne from 58,44,765 tonne YoY, while non-edible oil imports dropped to 32,412 tonne from 43,135 tonne.
India relies on imports to fulfil over 50 per cent of its domestic edible oil needs. Palm oil, primarily sourced from Indonesia and Malaysia and soybean oil, imported from Argentina and Brazil, are the country’s main edible oil imports.
Further, the SEA attributes the decline in vegetable oil imports to the reduced availability of palm oil for edible purposes. According to the association, major palm oil producers, Indonesia and Malaysia, are diverting palm oil towards biodiesel production. This shift in palm oil usage could potentially lead to a rise in edible oil prices in India during the current year.
In addition, the SEA further cautioned that global palm oil output, with Indonesia and Malaysia being major contributors, is anticipated to either remain stagnant or decrease in 2024 compared to the previous year. This is likely due to factors such as ageing plantations and limited expansion in production capacity.
