Global edible oil market may face increased volatility — SEA
Global edible oil markets may face higher volatility as El Niño, Black Sea supply uncertainties and Indonesia’s B50 biodiesel programme reshape global supply-demand dynamics. SEA expects soybean oil to gain importance while urging policy measures to strengthen India’s domestic edible oil sector, including tax reforms and tighter monitoring of duty-free imports.
The global edible oil market could enter a period of increased volatility in the coming months due to a combination of weather, geopolitical and regulatory factors, according to the Solvent Extractors’ Association of India (SEA) following a meeting with government officials in New Delhi.
SEA identified the potential impact of El Niño, uncertainty over sunflower oil supplies from the Black Sea region and Indonesia’s B50 biodiesel program among the key risks. Together, these factors could alter the global supply-demand balance for edible oils.
Against this backdrop, SEA expects soybeans and soybean oil to gain strategic importance in the coming months. They could partly offset possible disruptions or reduced availability of other edible oils on the global market.
SEA also raised several domestic issues affecting India’s edible oil industry. In particular, the association proposed a 5% goods and services tax on de-oiled rice bran to support domestic oil production and highlighted limited access for Indian rapeseed exporters to the Chinese market due to registration barriers.
Separately, SEA called for tighter controls on edible oil imports from Nepal, which enter India duty-free under the SAFTA agreement. Proposed measures include quotas, minimum import prices and stricter verification of certificates of origin
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Source : UkrAgroConsult – World-class agricultural consulting
