A decline in the import of palm oil led to a 15.46 per cent drop in the total import of edible oils in January 2025.
Data compiled by the Solvent Extractors’ Association of India (SEA) showed that India imported 10.07 lakh tonnes (lt) of edible oils during January of the oil year 2024-25 (November-October) against 11.91 lt in the corresponding period of the oil year 2023-24.
BV Mehta, SEA Executive Director, said India imported 2.75 lt of palm oil in January 2025 against 7.80 lt in January 2024. This import figure was the lowest in January in the last 13 years.
However, total edible oil imports increased to 37.83 lt during the first three months of the oil year 2024-25 from 36.47 lt in the corresponding period of the oil year 2023-24, recording a marginal growth of 3.72 per cent.
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Consumers’ shift
Total palm oil imports (including crude palm oil and RBD palmolein) decreased to 16.17 lt in the first three months of the oil year 2024-25 (25.46 lt during Nov-Jan 2023-24).
Malaysian palm oil exports declined as tightening export supplies promoted consumers to switch to lower priced South American soya oil.
During the first quarter of the oil year 2024-25, total crude palm oil (CPO) and RBD palmolein exports from Malayasia to India stood at 4.88 lt (7.29 lt) and 63,902 tonnes (53,127 tonnes), respectively.
Indonesia’s CPO and RBD palmolein exports to India decreased to 5.23 lt (9.61 lt) and 4.06 lt (6.14 lt), respectively, during the period.
- Also read: Soyabean, sunflower oils push India’s edible oil imports up by 13%
Soyabean gains
He said the global trend volume of soya oil has skyrocketed in recent months, promoted by extremely large price discounts. The strong response of consumers to the attractive soya oil prices is leading to a quick absorption of the surplus soya oil and help ease the tightness in palm oil. During November-January of 2024-25, soyabean oil import jumped to 12.7 lt (4.91 lt).
Though the price of palm oil came down by $80-100 a tonne in the past month, prices of soyabean oil remained attractive compared to palm oil.
In January, the CIF price of RBD palmolein and CPO declined to $1126 a tonne ($1236 a tonne in December) and $1170 a tonne ($1270 a tonne), respectively. The CIF price of crude soyabean oil declined to $1118 a tonne in January from $1123 a tonne in December.
India mainly imported crude soyabean degummed oil from Argentina (8.92 lt) followed by Brazil (1.87 lt) and Russia (1.21 lt) during the period.
Nepal impact
He said massive influx of refined soyabean oil and palm oil at lower price from Nepal to India is seriously hurting domestic refiners and farmers distorting the local market, and also leading to loss of revenue to the Government. Nepal imported about 2 lt of edible oil (mainly crude soyabean oil and sunflower oil) during October 15 2024 to January 15 2025, and exported 1.1 lt of edible oil to India, he said.
Sunflower imports up
India imported 8.93 lt of sunflower oil during the first three months of the oil year 2024-25 against 6.09 lt in the corresponding period of the previous oil year.
India imported crude sunflower oil mainly from Russia (6 lt), Ukraine (2.12 lt) and Argentina (56,200 tonnes) during the period.
Soft oil imports jumped to 21.66 lt in Q1 of the oil year 2024-25 from 11.01 lt in the same period of last oil year. The share of palm oil in the total edible oil imports sharply decreased to 43 per cent from 70 per cent, while the share of soft oils increased to 57 per cent from 30 per cent, he said.