Soyabean, sunflower oils push India’s edible oil imports up by 13%

A significant jump in the imports of soyabean oil and sunflower oil has led India to register 13.03 per cent growth in edible oils imports in the first two months of the oil year 2024-25 (November-October).

According to the data compiled by the Solvent Extractors’ Association of India (SEA), the country imported 27.25 lakh tonnes (lt) of edible oils during the first two months of the oil year 2024-25 against 24.55 lt last year.

BV Mehta, Executive Director of SEA, said palm oil is losing market share in India and slowing down, and the share of soyabean oil is gaining.

Import of palm oil (including RBD palmolein and crude palm oil) decreased to 13.42 lt in the first two months of the oil year 2024-25 against 17.63 lt last year. This is a decline of 23.89 per cent.

He said tightening export supplies prompted consumers to switch to lower priced South American soyabean oil.

India’s soyabean oil imports increased 173.78 per cent to 8.28 lt (3.02 lt in November-December of oil year 2024-25)

Stating that the global trend volume of soya oil has skyrocketed in recent months promoted by extremely large price discounts, BV Mehta said the strong response of consumers to the attractive soya oil prices is leading to a quick absorption of the surplus soya oil and ease the tightness in palm oil.

India imported 6.05 lt of sunflower oil (3.89 lt) during the first two months of the oil year 2024-25.

The share of palm oil in total edible oil imports decreased to 48 per cent (72 per cent) in the first two months of the oil year 2024-25, while soft oils increased to 52 per cent (28 per cent).

USDA on Indonesian palm oil

Meanwhile, the January report of the United States Department of Agriculture’s (USDA) Foreign Agricultural Service titled ‘Oilseeds: World Markets and Trade’ said the Indonesia Ministry of Energy and Mineral Resources on January 3, decreed 15.6 million kiloliters of biodiesel to be included in the domestic fuel pool, raising the blend rate for biodiesel from 35 per cent to 40 per cent. This increase in domestic consumption is expected to reduce the amount of palm oil available for export.

The anticipated increase in domestic consumption from B40 adoption will push the percentage of palm oil production exported to fall. Lower available supplies for export have fuelled gains in palm oil prices, helping to propel palm oil to its position as the highest priced vegetable oil in recent months, the report said.

Vegetable oil importers across the globe have started shifting to lower-priced oils, including soyabean oil from the United States, it added.

Import price

The CIF price for the imported RBD palmolein increased to $1,236 a tonne in December against $1,233 a tonne in November, and crude palm oil (CPO) to $1270 a tonne in December from $1,269 a tonne in November.

Meanwhile, the CIF price for the imported crude soyabean oil decreased to $1,123 a tonne in December from $1,219 a tonne in November, and crude sunflower oil to $1,206 a tonne in December to $1,265 a tonne in November.

Major exporters

According to SEA data, Indonesia exported 4.16 lt of CPO and 3.77 lt of RBD palmolein, and Malaysia 4.02 lt of CPO and 62,402 tonnes of RBD palmolein to India during the first two months of the oil year 2024-25.

India imported 6.11 lt of crude soyabean degummed oil from Argentina, 82,421 tonnes from Brazil, and 81,339 tonnes from Russia during the period.

Russia exported 3.98 lt of crude sunflower oil, Ukraine 1.49 lt and Argentina 47,200 tonnes to India during the first two months of the oil year 2024-25.