Vegetable oil imports hit five-month low, drop 16 percent in August

Vegetable oil imports in August 2024 hit a five-month low, falling by 16% compared to August 2023. This year, 15.63 lakh tonnes of vegetable oils were imported, down from 18.66 lakh tonnes last year. For the first 10 months of the 2023-24 oil year (November to August), imports decreased by 3%. SEA (Solvent Extractors Association of India) reported these figures.

The association estimates that edible oil imports for the next two months, September-October, will be around 27 to 28 lakh tonnes. As a result, total imports (edible oil) for the oil year 2023-24 (November-October) are expected to range between 160-165 lakh tonnes, nearly the same as last year.

In the first 10 months of 2023-24, 1.36 crore tonnes of vegetable oil were imported, compared to 1.41 crore tonnes during the same period in 2022-23. In August 2024, India imported 15.36 lakh tonnes of edible oil and 27,100 tonnes of non-edible oil, while in August 2023, these figures were 18.52 lakh tonnes and 14,008 tonnes, respectively.

The association also noted that soybean prices in the past two months were Rs 550-600 below the MSP of Rs 4892 set by the government for the 2024-25 Kharif Marketing Season, causing concern among farmers. With only 4-5 weeks left for the new crop, the pressure on farmers is expected to increase. SEA welcomed the government's decision allowing Madhya Pradesh, Maharashtra, and Karnataka to buy soybeans at Rs 4892 per quintal, stabilizing prices, which now range between Rs 4600 and Rs 4700.

SEA has urged the government to increase import duties on crude and refined edible oils by 20-25 percent, with a 15 percent duty difference, which will help farmers get better prices and reduce the need for government MSP procurement. SEA has consistently requested this increase, hoping for a positive response.

In the current oil year, palm oil imports fell by 7 percent from November 2023 to August 2024, dropping from 82.46 lakh tonnes last year to 76.42 lakh tonnes this year. Refined oil imports decreased by 16 percent, while crude oil imports dropped by 2 percent. Soybean oil imports were 27.14 lakh tonnes in November-August 2023-24, down from 31.82 lakh tonnes the previous year. However, sunflower oil imports rose to 31.14 lakh tonnes, up from 25.46 lakh tonnes during the same period last year.