India’s edible oil imports have seen a significant increase in the first two months of the oil year 2024-25, with a growth of 13.03% compared to the previous year. This rise in imports is largely attributed to the surge in imports of soyabean oil and sunflower oil, while palm oil is losing market share.
The data from the Solvent Extractors’ Association of India (SEA) reveals that the country imported 27.25 lakh tonnes of edible oils during this period, compared to 24.55 lakh tonnes in the same period last year. The share of palm oil in total imports has decreased to 48%, while soft oils like soyabean oil and sunflower oil have seen an increase in their share.
The increase in soyabean oil imports, which have jumped by 173.78%, is driven by the attractive prices of South American soyabean oil. Consumers are responding to the competitive pricing of soyabean oil, leading to a quick absorption of surplus soya oil and easing the tightness in palm oil supply.
The report also highlights the impact of Indonesia’s decision to increase the blend rate for biodiesel, which is expected to reduce the amount of palm oil available for export. This, in turn, has fueled gains in palm oil prices, making it the highest priced vegetable oil in recent months.
In terms of major exporters to India, Indonesia and Malaysia are the primary sources of palm oil, while countries like Argentina, Brazil, and Russia are major suppliers of soyabean oil and sunflower oil.
Overall, the shift in consumer preference towards soyabean and sunflower oils, driven by pricing and supply dynamics, is reshaping the edible oil import landscape in India. As global trends continue to evolve, it will be interesting to see how the market adapts to these changes in the coming months.
