Edible oil imports. Edible oil imports down by 14% in April on Russia-Ukraine war impact

Supply constraints in sunflower oil due to the Russia-Ukraine war has put a dent on the import of edible oils during April, which declined by 14.41 per cent over March and 12.60 per cent over April 2021.

According to the data available with Solvent Extractors’ Association (SEA) of India, the country imported 9 lakh tonnes (lt) of edible oil in April against 10.51 lt in March and 10.29 lt in April 2021. However, the import increased to 6.54 million tonnes (mt) in the first six months of the oil year 2021-22 (November-April) against 6.27 mt in the corresponding period of 2020-21, recording a growth of 4.35 per cent.

Sunflower supply woes

BV Mehta, Executive Director of SEA of India, said no shipment of sunflower oil took place from Ukraine since March 27. During November-April of 2021-22, India imported around 1.11 mt of sunflower oil, including 8.42 lt from Ukraine, 2.1 lt from Russia, and 56,426 tonnes from Argentina.

Import of sunflower oil was only at 54,426 tonnes during April 2022 as against 1.84 lakh tonnes in April 2021, and 2.12 lt in March 2022.

High prices in the international and domestic market added with lesser availability have shrunk the demand and consumption of sunflower oil in India. This shortfall is partially being replaced by other edible oils such as palmolein, soyabean oil, groundnut oil and rice bran oil, he said.

Palm oil share dips

On the palm oil front, he said the import of RBD palmolein has jumped from 24,101 tonnes in April 2021 to 9.2 lt in April 2022, mainly due to high export levy of $575 a tonne on crude palm oil (CPO) and lower duty of $408 a tonne on RBD palmolein from Indonesia. This favours Indonesian exporters to discount RBD palmolein to push its export.

On April 28, Indonesia banned the export of palm oil making life difficult for hapless consumer across the world. India imports around 6.5 lt of palm oil per month from Indonesia, Malaysia and Thailand and other countries. Of this, Indonesia’s share is around 3 lt.

Total palm oil imports (including CPO and refined oil) increased to 5.72 lt in April as against 5.39 lt in March, recording a growth of 6.06 per cent. Total palm oil imports decreased to 3.22 mt during November-April of 2021-22 against 3.79 mt in corresponding period of 2020-21, recording a decline of 14.94 per cent.

Mehta said the share of palm oil (including CPO and refined oil) in the total edible oil imports decreased to 49 per cent (3.22 mt) during November-April 2021-22 from 60 per cent (3.79 mt) in the November-April 2020-21. The import of soft oils increased to 51 per cent (3.31 mt) during November-April 2021-22 from 40 per cent (2.47 mt) in November-April 2020-21. He attributed this growth mainly to higher import of soyabean oil during the period.

BV Mehta, Executive Director, Solvent Extractors’ Association of India | Photo Credit: UNKNOWN

Soyabean oil gains

India imported 2.73 lt of soyabean oil in April 2022 against 1.44 lt in April 2021, recording a growth of 89.66 per cent. Imports also increased to 2.20 mt during November-April 2021-22 against 1.37 mt in the corresponding period of 2020-21, recording a growth of 60.33 per cent.

India imported 1.41 mt (1.24 mt) of crude soyabean degummed oil from Argentina, 4.95 lt (0.67 lt) from Brazil, and 1.23 lt (0.36 lt) from US during the period. As on May 1, the stock of edible oils was estimated at 4.16 lt at various ports and pipeline stock at 1.8 mt, taking the total stocks to 2.23 mt. Mehta said the total stock was estimated at 1.89 mt as on April 1.

The total import of vegetable oils (including edible oil and non-edible oil) was at 0.91 mt in April 2022 against 1.03 mt in April 2021. The overall import increased to 6.7 mt during the first six months of the oil year 2021-22 against 6.42 mt in the corresponding period of 2020-21.

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