Low Demand and Increased Domestic Crushing Curb Imports, Says SEA
New Delhi, May 14 — India's vegetable oil imports witnessed a sharp 32 percent year-on-year drop in April, falling to 8.91 lakh tonnes, according to the Solvent Extractors Association (SEA). The decline is attributed to reduced demand for palm oil and increased mustard seed crushing domestically.
Imports stood at 13.18 lakh tonnes in the corresponding period last year, reflecting a notable contraction in both edible and non-edible oil shipments.
"The import in the last three months was at a very low level due to reduced demand for palm oil coupled with increased crushing of mustard in the country," SEA noted.
Nepal Shipments Impact Overall Import Volume
SEA highlighted that monthly imports of refined edible oils from Nepal, estimated at 60,000 to 70,000 tonnes, also influenced overall volumes and stock positions.For the first six months of the current oil year (November–October), total vegetable oil imports fell to 65.02 lakh tonnes, down from 70.69 lakh tonnes in the same period last year.
Palm Oil Imports See Steep Decline
Palm oil imports in April slumped 53 percent, reaching 3.21 lakh tonnes, compared to 6.84 lakh tonnes in April 2023. Crude palm oil (CPO) recorded a 55 percent drop, landing at 2.41 lakh tonnes.Soft Oils See Lesser Decline
Among soft oils:- Sunflower oil imports fell by 23.28 percent to 1.80 lakh tonnes
- Soybean oil imports declined by 20.37 percent to 3.60 lakh tonnes
These shifts have altered India's edible oil consumption mix. Over the last six months, the share of palm oil dropped to 42 percent from 60 percent, while soft oils grew to 58 percent from 40 percent.
India’s Edible Oil Reserves and Trade Partners
As of May 1, India’s edible oil stock stood at 13.51 lakh tonnes.India relies heavily on international suppliers for its edible oil needs:
- Palm oil: Primarily sourced from Indonesia and Malaysia
- Soybean oil: Mainly imported from Argentina, Brazil, and Russia
- Sunflower oil: Largely procured from Russia and Ukraine