India’s total edible oil imports declined by 2.18 per cent during the first five months of the oil year 2024-25 (November to October) due to a sharp fall in the import of palm oil.
Data compiled by the Solvent Extractors’ Association of India (SEA) showed that India imported 56.39 lakh tonnes (lt) of edible oils during November-March of 2024-25 against 57.65 lt in the corresponding period of 2023-24. Total palm oil imports, including crude palm oil (CPO) and RBD palmolein, decreased to 24.15 lt during November-March 2024-25 from 35.29 lt during the corresponding period of the previous oil year.
Giving the break-up of the decline in the import of palm oil, BV Mehta, Executive Director of SEA, said the import of refined oil (RBD palmolein) declined to 6.62 lt during November-March 2024-25 (8.86 lt during November-March 2023-24). Import of CPO decreased to 17.23 lt (25.96 lt) during the period.
Stating that there was increase in the import of soft oils during the first five months of the oil year 2024-25, he said India imported 32.24 lt of soft oils (22.35 lt) during the period. Import of soyabean oils increased to 19.11 lt during the first five months of 2024-25 from 8.82 lt in the corresponding period of the previous oil year.
The share of palm oil (including CPO and RBD palmolein) in the total edible oil imports decreased to 43 per cent from 61 per cent and soft oils increased to 57 per cent from 39 per cent, he said.
Tariff war impact
On the impact of trade war between China and the US on the edible oil market, he said this trade war may have impact on palm oil. Palm oil export to the US will be subject to 10 per cent import tariff. These tariffs will raise the cost of palm oil for the US end-users. The tariff-induced price increase is likely to drive the US food manufacturers and consumers to substitute palm oil with more competitively priced domestic alternatives such as soyabean oil benefitting the US soyabean farmers.
On a positive note, the US is a relatively small consumer of palm oil, accounting for just 1.9 million tonnes (mt) of global palm oil consumption of 78 mt, or approximately 2.4 per cent of global palm oil usage, he said.
Indonesia a major exporter
During November-March 2024-25, Indonesia exported 8.61 lt of CPO and 5.70 lt of RBD palmolein to India. This was followed by Malaysia at 7.31 lt of CPO and 82,102 tonnes of RBD palmolein.
India imported 12.16 lt of crude soyabean de-gummed oil from Argentina, 3.27 lt from Brazil and 1.62 lt from Russia during the period.
Russia exported 8.29 lt of crude sunflower oil during the first five months of the oil year 2024-25. This was followed by Ukraine at 2.96 lt and Argentina at 83,750 tonnes.
Non-edible oils
India imports non-edible oils such as PFAD and RBD palm stearin for the soap and ole-chemical industry. India imported 1.66 lt of non-edible oils during November-March 2024-25 against 64,883 tonnes in the corresponding period of the previous oil year.