India imported 10.87 lakh tonnes of vegetable oils in September, marking a six-month low. This is a significant decrease from 15.52 lakh tonnes imported in September 2023. The central government raised customs duty on edible oil imports by 20 percent in September, which is believed to be the main reason for this drop. Additionally, prices of edible oils have risen in the domestic market recently.
According to the Solvent Extractors Association of India (SEA), imports for the oil year 2023-24 are expected to be 160 lakh tonnes, which is five lakh tonnes less than the previous year’s total of 165 lakh tonnes. Imports have decreased by 6 percent during the first 11 months of the current oil year 2023-24. Although shipments increased in July and August, demand has remained low, causing domestic traders to buy less palm oil, as its price is higher than soybean and sunflower oil.
According to data from the Union Ministry of Consumer Affairs, Food and Public Distribution, prices of packed edible oils have increased in the domestic market in the last month. The average retail price of packed soybean oil rose from Rs 118.69 to Rs 135.41 per litre, sunflower oil from Rs 120.33 to Rs 138.96 per litre, and palm oil from Rs 100.19 to Rs 120.09 per litre over the past month.
In September this year, India imported 10.64 lakh tonnes of edible oil and 22,100 tonnes of non-edible vegetable oil. In the same month last year, the imports were higher, with 14.94 lakh tonnes of edible oil and 57,940 tonnes of non-edible vegetable oil.
In the first 11 months of the current oil year, palm oil imports dropped by 10 percent, falling from 90.80 lakh tonnes last year to 81.69 lakh tonnes this year. During this time, the import of refined oil decreased by 17 percent and the import of crude oil fell by 4 percent.
According to SEA, during the first 11 months of the oil year 2023-24, soybean oil imports were 30.98 lakh tonnes, down from 35.41 lakh tonnes in the same period last year. Meanwhile, sunflower oil imports rose to 32.67 lakh tonnes, compared to 28.46 lakh tonnes in the same period last year.