Vegetable Oil Imports Drop For Sixth Month Despite Duty Cut
India’s vegetable oil imports fell for the sixth straight month in May 2025, dropping 22.36% year-on-year to 11.87 lakh tonnes. Despite a customs duty cut on crude oils, overall import volumes are unlikely to rise. Palm oil imports declined 22.32%, while sunflower oil plunged 55.3%. The shift favors crude over refined oil, easing prices and boosting domestic refining.
India’s vegetable oil imports declined for the sixth consecutive month in May, falling 22.36 per cent year-on-year to 11.87 lakh tonnes, according to data released by the Solvent Extractors Association (SEA) on Thursday. Total imports of vegetable oils—including edible and non-edible variants—stood at 15.29 lakh tonnes in May 2024.
In the first seven months of the 2024–25 oil year (November–October), imports fell to 78.84 lakh tonnes from 86.78 lakh tonnes during the same period last year.
Despite the government’s move on 30 May to slash the basic customs duty on crude palm, soybean, and sunflower oils from 20 per cent to 10 per cent, the SEA asserted that this policy will not significantly alter overall import volumes. Instead, the import duty reduction is expected to bring down domestic prices and revitalise domestic refining by shifting demand from refined palmolein to crude palm oil.
“This move is unlikely to push edible oil prices upward. In fact, it should help consumers by reducing prices,” the SEA said, urging members to pass on the benefits to consumers.
Palm oil imports in May dropped 22.32 per cent to 5.92 lakh tonnes, with crude palm oil alone accounting for 5.05 lakh tonnes—down 5.03 per cent from last year. Soybean oil imports were down 23 per cent at 3.98 lakh tonnes, and sunflower oil saw the steepest fall at 55.30 per cent to 1.83 lakh tonnes.
The share of palm oil in total edible oil imports has declined to 42 per cent from 58 per cent over the last seven months, while the share of soft oils has risen to 57 per cent from 42 per cent.
India, the world’s largest edible oil importer and consumer, had edible oil stocks of 13.33 lakh tonnes as of 1 June. Imports of refined oils from Nepal—estimated at 60,000–70,000 tonnes monthly—have also influenced India’s overall import figures and stock position.
Indonesia and Malaysia continue to be India’s primary palm oil suppliers, while Argentina, Brazil, and Russia supply soybean oil. Sunflower oil is mainly sourced from Russia and Ukraine.
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Source : Business World
