The total import of edible oils during February reached the lowest monthly levels since the Covid-affected May 2020.
Data compiled by Solvent Extractors’ Association of India (SEA) showed that India imported 8.85 lakh tonnes (lt) of edible oil in February of the oil year 2024-25 (November-October) against 9.58 lt in the corresponding month of 2023-24, registering a decline of 7.64 per cent.
BV Mehta, Executive Director of SEA, said this is the lowest monthly import since May 2020, when imports fell to 7.20 lt due to the Covid-19 pandemic.
In February 2025, the import of palm oil, dropped to a four-month low. India imported a total of 3.73 lt of palm oil (including crude palm oil and RBD palmolein) during February 2025 against 4.97 lt in February 2024, a decline of 24.94 per cent. Disparity in refining forced Indian importers to move to soft oils, he said.
Cushioned by high stocks
Total soft oils import of India increased to 5.12 lt in February 2025 against 4.70 lt in February 2024, a growth 8.94 per cent.
However, the total edible oil imports increased to 46.69 lt in the first four months of the oil year 2024-25 from 46.06 lt in the corresponding period of the previous oil year, recording a growth of 1.35 per cent.
He said the recent drop in imports has been cushioned by high stock levels accumulated in India up to November 2024, which have now dropped below 2 million tonnes. The rapid depletion of stocks is expected to drive increased purchases, particularly of palm oil.
Over the past few weeks, crude palm oil (CPO) prices have strengthened slightly relative to landed costs in the Indian market. However, weak price competitiveness in the global market may limit Indian palm oil imports in the near term, he said.
Stating that growth in oil consumption is expected to slow down in oil year 2024-25, he said the high price premium on palm oil has reduced both imports and consumption in recent months, leading to a sharp increase in the combined consumption of soyabean oil and sunflower oil.
He said trade flows from Nepal have played a role this season. Nepalese exports of refined soyabean oil to India — benefiting from duty-free access — have increased. Similarly, exports of Vanaspati from Nepal and Sri Lanka to India have also picked up recently.
Crude vs soft oil imports
India imported 5.88 lt of refined oil (RBD palmolein) during the first four months of the oil year 2024-25 as against 7.92 lt in the corresponding period of the oil year 2023-24. The total crude edible oil imports increased to 40.80 lt during November-February 2024-25 from 38.13 lt in the corresponding period of 2023-24.
The ratio of refined oil decreased to 13 per cent from 17 per cent due to lesser import of RBD palmolein in January 2025, while crude edible oils ratio increased to 87 per cent from 83 per cent.
Major exporters
During November-February 2024-25, Indonesia was major supplier of CPO at 6.39 lt and RBD palmolein at 5.03 lt. This was followed by Malaysia at 6.25 lt of CPO and 74,902 tonnes of RBD palmolein.
India mainly imported 10.30 lt of crude soyabean degummed oil from Argentina followed by 2.74 lt from Brazil, and 1.46 lt from Russia during the period. India imported 7.45 lt of crude sunflower oil from Russia followed by 2.68 lt from Ukraine, and 56,200 tonnes from by Argentina during the period.
–EOM–
