Rising demand fuels India's edible oil imports, with palm oil leading the surge

India witnessed a significant increase in its import of edible oils in June, with a growth of 39.31 per cent compared to the same month last year, reaching 13.11 lakh tonnes, according to a statement by the Solvent Extractors' Association of India (SEA). The surge in imports can be attributed to the heightened demand in the country. In June 2022, India imported 9.41 lakh tonnes of edible oil, as reported by the SEA.

The overall imports of vegetable oils, including both edible and non-edible varieties, experienced a notable rise of 49 per cent, reaching 13.14 tonnes in June compared to 9.91 lakh tonnes in the corresponding month last year. Among these imports, non-edible oils accounted for 2,900 tonnes, primarily acquired by the soap and oleo-chemical industries.

Despite the availability of ample domestic supplies and a substantial reduction in domestic edible oil prices, the increase in demand has driven the surge in imports, according to the SEA. This resurgence in demand is particularly evident in the import figures for crude palm oil, which rose to 4.66 lakh tonnes in June, surpassing the 3.48 lakh tonnes imported in the previous month.

Another noteworthy recovery was observed in the import of refined, bleached, and deodorised (RBD) palm oil, which jumped from 85,000 tonnes in the previous month to 2.17 lakh tonnes in June. This significant increase indicates a robust rebound in palm-based products during June.

However, the data revealed a decline in the import of sunflower oil, which stood at 1.90 lakh tonnes compared to 2.95 lakh tonnes in the previous month.

The SEA also highlighted that the import of palm oil from Indonesia surged to 4.76 lakh tonnes, while Malaysia's share remained modest at 1.54 lakh tonnes.

Furthermore, the import of soybean oil from Brazil has been steadily rising, reaching 1.65 lakh tonnes in June 2023. Over the period from November to June, the total import of soybean oil from Brazil reached a record level of 9.73 lakh tonnes, compared to 7.20 lakh tonnes in the previous year.

The increased demand for edible oils in India, despite the availability of domestic supplies, suggests a changing consumption pattern and growing preference for imported oils. The surge in imports of palm oil, as well as the rise in soybean oil imports from Brazil, underscores the evolving dynamics of India's edible oil market.