Following the recent import duty hike, India has been able to bring down its vegetable oil imports by about 27 per cent in July against the same month last year.

The trade also attributed the fall in imports to other factors such as the depreciating rupee and the credit crunch scenario in the country. However, since May 2018, India’s vegoil imports have declined steadily.

Data compiled by the Solvent Extractors’ Association of India (SEA) put total vegetable oil imports at 11,19,538 tonnes for July as compared to 15,24,724 tonnes reported in the same month last year. This is a 27 per cent dip — the sharpest decline in any month since November 2017.

“The revision of import duty in June 2018, fast rupee depreciation and also credit crunch has led to negative growth in import of vegetable oils,” said BV Mehta, executive director, SEA.

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The data revealed that vegoil imports in May declined by 7 per cent from the same month last year, while the decline was a steep 23 per cent in June 2018 vis-a-vis the same month last year.

According to the SEA, over the last year, prices of edible oils in the international market have gone down by about 14 per cent due to excess supplies in the world market and reduced demand from India.

Most vegoils witnessed decline in prices to the tune of about $100 per tonne. RBD Palmolein prices fell from $683 per tonne CIF Indian port to $592. Crude Palm Oil prices too fell from $681 a tonne to $583.

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