India’s edible oil imports rose sharply by 38.5% to 15.9 lakh tonnes in November 2024, driven by a significant surge in shipments of crude sunflower oil and crude soybean oil, according to data from the Solvent Extractors’ Association of India (SEA).
The SEA, in its latest report released on Thursday, highlighted that total vegetable oil imports, including edible and non-edible oils, stood at a record 16.27 lakh tonnes in November 2024, marking a 40% increase from 11.61 lakh tonnes in November 2023.
In the edible oils, imports of crude sunflower oil more than doubled to 3.41 lakh tonnes from 1.29 lakh tonnes a year ago, while crude soybean oil shipments surged to 4.08 lakh tonnes from 1.5 lakh tonnes. Imports of RBD palmolein also rose significantly to 2.85 lakh tonnes from 1.71 lakh tonnes in the same period.
However, crude palm oil imports dropped by 21% to 5.47 lakh tonnes in November 2024, compared to 6.92 lakh tonnes in November 2023. This contributed to an overall decline in palm oil imports (both crude and refined) to 8.42 lakh tonnes from 8.69 lakh tonnes, while soft oils (soybean and sunflower oil) imports increased to 7.48 lakh tonnes from 2.78 lakh tonnes in November 2023.
Import of soft oils on Rise
The shift in import trends was further reflected in market shares: palm oil accounted for 53% of total edible oil imports, down from 76% a year ago, while the share of soft oils (soybean and sunflower oil) rose to 47% from 24%. The ratio of refined oil increased to 18% from 15%, while the crude palm oil ratio decreased to 82% from 85% even though increased in the quantity of import
Impact on Farmers & Domestic Industry
The SEA noted that the excessive import of soybean is placing pressure on domestic soybean prices which are currently quoted at around ₹4,250-4,300 a quintal against MSP (minimum support price) of ₹4,892 a quintal. Due to this, farmers are facing huge losses. This is complicating the situation for Indian soybean processors who already suffer from poor competitiveness of their soya meal in the world market.
To support farmers and the market, SEA has urged the Central government to lift the suspension of futures trading on CPO, soybean oil, mustard seed, and soybean, and not to extend beyond December 20.
Major exporters
India sources RBD palmolein and crude palm oil primarily from Indonesia and Malaysia, while soyabean oil and sunflower oil imports come from Argentina, Brazil, Russia, Ukraine, and Argentina.
Indonesia exported 2.42 lakh tonnes of crude palm oil and 2.40 lakh tonnes of RBD palmolein to India in November 2024. During the same period, Malaysia exported 2.61 lakh tonnes of crude palm oil and 44,402 tonnes of RBD palmolein. India imported 3.37 lakh tonnes of crude soybean oil from Argentina, 22,298 tonnes from Brazil, and 23,643 tonnes from Russia. Russia supplied 2.03 lakh tonnes of crude sunflower oil to India, followed by Ukraine with 1.15 lakh tonnes and Argentina with 22,200 tonnes during this period.