SEA expects edible oil imports to be at 165 lakh tonnes in 2023-24 season

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The Solvent Extractors’ Association of India (SEA) is expecting India’s edible oil import to be at around 160 lakh tonnes (lt) to 165 lt during the 2023-24 season (November-October). In its latest data, SEA said India imported 136.87 lt of edible oils during the first 10 months of the oil year against 141.21 lt in the corresponding period a year ago, down by 3.07 per cent.

BV Mehta, Executive Director of SEA, said the trade estimate for import of edible oils during September–October is about 27 lt to 28 lt. The total import for the oil year 2023-24 is likely to be in between 160 lt and 165 lt, almost the same as last year, he said.

Unrest among farmers

Soyabean ex-mandi price was much below the minimum support price (MSP) of ₹4,892 a quintal over the past two months. The market price was ₹550-600 a quintal lower than MSP, he said, adding, this created a lot of unrest among farmers. Stating that the new crop is just four to five weeks away, he said it will bring additional pressure on price realisation to the farmers during the harvesting period.

Complimenting the Union government for permitting Madhya Pradesh, Maharashtra, Telangana and Karnataka to procure soyabean at the MSP of ₹4892 a quintal, he said this will provide support to the price. The price has improved to ₹4,600-4,700 a quintal over the past 2-3 days.

Best solution

Mehta said the best solution would be to increase import duty on crude edible oils and refined oils by 20-25 per cent across the board with a duty difference of minimum 15 per cent. This will translate into remunerative price to farmers for their produce and the market forces will able to pay above MSP price to the farmers. At the same time, the government will not have to procure it at MSP. It will be win-win situation for farmers, industry and the government, he said.

India imported 16.10 lt of refined oil (RBD palmolein) during the first 10 months of the oil year 2023-24 against 19.24 lt imported during the corresponding period of the previous oil year, a decline of 16 per cent. Total crude edible oil import was at 118.60 lt during November-August of the 2023-24 season against 120.50 lt in the corresponding period of the previous oil year, a decline of 2 per cent.

Total palm oil imports to India stood at 76.42 lt during the first 10 months of the oil year 2023-24 against 82.46 lt in November-August of the oil year 2022-23, a decline of 7 per cent.

In contrast, India’s import of soft oils increased to 58.28 lt during the first 10 months of the oil year 2023-24 against 57.28 lt in the corresponding period of the previous oil year.

Major exporters

During November-August 2023-24, Indonesia was the leading supplier of palm oil. It exported 28.06 lt of crude palm oil (CPO) and 13.77 lt of RBD palmolein. Malaysia followed it with 23.76 lt of CPO, and 2.27 lt of RBD palmolein.

During the period, India imported 16.70 lt of crude soyabean degummed oil from Argentina, followed by Brazil at 8.15 lt. Russia exported 15.23 lt of crude sunflower oil during the first 10 months of the oil year 2023-24, followed by Romania (6.29 lt), Ukraine (4.85 lt), and Argentina (3.62 lt).