India`s Edible Oil Imports Take a 20% Dip: Sunflower Rises, Soyabean Falls, and Refined Oils Surge in a Dynamic Market /AmitGupta kediaAdvisory
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India's edible oil imports plunge by 20.38% in the initial two months of 2023-24, marked by a boost in sunflower oil acquisitions and a notable decline in soyabean imports. The drop in crude palm oil (CPO) is evident, while refined oils, particularly RBD palmolein, seize a growing share in the import landscape. The stockpile of edible oils in India remains substantial at 28.97 lt as of January 1, reflecting the industry's resilience.
Highlights
Edible Oil Imports in India: Edible oil imports in India witnessed a significant decline of 20.38% in the first two months of the oil year 2023-24 (November to October).
Import Statistics: India imported 24.55 lakh tonnes (lt) of edible oil during the stated period, down from 30.84 lt in the corresponding period of the previous oil year 2022-23.
Variation in Sunflower Oil and Soyabean Oil Imports: Sunflower oil imports increased to 3.89 lt in November-December 2023-24 compared to 3.51 lt in the same period of the previous year. However, soyabean oil imports decreased from 4.81 lt to 3.02 lt during the corresponding period.
Crude Palm Oil (CPO) Import Decline: Import of CPO decreased to 13.12 lt in the first two months of 2023-24, down from 17.75 lt in November-December 2022-23.
Country-wise Exporters and Importers: Indonesia exported 7.16 lt of CPO and 3.85 lt of RBD palmolein to India, while Malaysia exported 4.46 lt of CPO and 37,342 tonnes of RBD palmolein during the same period.
Changes in Import Composition: Refined oils (RBD palmolein) saw an increased share in total imports, rising from 15% in November-December 2022-23 to 17% in 2023-24. Crude edible oils' share decreased from 85% to 83% during the current oil year.
Total Edible Oil Stock in India: The total stock of edible oils in India was reported at 28.97 lt as of January 1, slightly lower than the 29.60 lt recorded on December 1. This includes a provisional stock of 9.48 lt at various ports and a pipeline stock of 19.49 lt as of January 1.
Conclusion
The nuanced trends in India's edible oil imports reveal a shifting landscape influenced by diverse factors. With sunflower oil gaining prominence and refined oils asserting their presence, the market dynamics suggest adaptability in response to global and domestic influences. Despite challenges, the robust stockpile positions the industry to navigate uncertainties, showcasing resilience and strategic readiness in the face of evolving trade patterns and supply dynamics.
