Indian February edible oil imports fall to lowest level in four years
India’s edible oil imports hit a four-year low in February, with total imports falling 12% to 899,565 tonnes, the lowest since February 2021. Soybean and sunflower oil imports saw significant declines, dropping 36% and 20.8%, respectively. As stocks also hit a three-year low, experts predict a potential increase in palm and soybean oil imports in March, as the country works to rebuild reserves.
India’s edible oil imports in February fell to their lowest level in four years, reducing stocks to their lowest figure in three years, according to a Reuters report quoting Solvent Extractors’ Association of India (SEA) data.
Imports of soyabean oil fell 36% to 283,737 tonnes in February and sunflower oil imports fell 20.8% to 228,275 tonnes, the SEA said.
In total, the country’s February vegetable oil imports fell by 12% to 899,565 tonnes, the lowest since February 2021.
Edible oil stocks in India totalled 1.87M tonnes on 1 March, the lowest figure in more than three years.
Palm and soyabean oil imports were likely to improve in March, as the industry was trying to build stocks, Rajesh Patel, managing partner at GGN Research, was quoted as saying in the 11 March Reuters report.
The world’s largest edible oil importer meets almost two-thirds of its vegetable oil demand through imports, according to Reuters, which wrote in a 21 February report that India was likely to raise vegetable oil import taxes to help oilseed farmers suffering from a crash in domestic oilseed prices.
In September 2024, India had imposed a 20% basic customs duty on vegetable oils, with 5.5% duties on crude palm, soyabean and sunflower oils rising to 27.5%, and a 35.75% import tax on refined grades of the three oils, the report said.
The SEA said farmers needed support to maintain their interest in oilseed cultivation.
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Source : OFI Magazine
