Soybean Market: Edible oil import pressure on soybeans; Imports increased by as much as 25 percent
Soybean Oil : The import of edible oil has increased in the country this year. In the first nine months, edible oil imports have increased by as much as 25 percent. This is putting pressure on the oilseeds market in the country. Farmers are waiting for soybean price hike. But due to increase in edible oil import, domestically produced soybean oil is not getting rise.
Soybean prices are under pressure in the country’s market for the last three to four months. Farmers kept soybeans back this year too as they got good prices last season. But due to constant pressure on prices, farmers’ worries increased. Increased import of edible oil is also one of the major reasons behind pressure on the prices of soybeans, important oilseeds in the country. In the first three quarters of the current oil marketing year in the country, i.e. in nine months, edible oil import in the country increased by as much as 25 percent.
According to the information given by The Solvent Extractors Association of India or SEA, the country imported 121 lakh 22 thousand tonnes of edible oil between November 2022 and July 2023. In the previous oil year, the import during the same nine months was around 9.7 lakh tonnes. That means this year the import has increased by 25 percent. This year’s import is almost 24 lakh tonnes more.
Soybean oil import decreased, sunflower increased
Import of soybean and sunflower oil reached 50 lakh tonnes. This import is two lakh tons more than last year. The share of these two oils in the total import decreased by 9 percent to 41 percent. India imported 28 lakh 24 thousand tons in these nine months. In the previous season, the import during the same period was 33 lakh 30 thousand tons. Sunflower oil imports were 1.5 million tonnes in the first nine months of the previous season. This year it reached almost 22 lakh tonnes.
After the fall in the price of edible oil in the international market, the prices in the country also fell. This increased the demand for edible oil in the country. In the first three quarters, the country imported 12.1 lakh tonnes. Seeing this, it will not be surprising if there is a record 155 lakh tonnes of imports this year. Earlier in 2016-17, 15.1 lakh tonnes were imported.
– Bharat Mehta, Executive Director, SEA
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