India`s Edible Oil Imports Hit 4-Year Low, Stocks Deplete by Amit Gupta, Kedia Advisory
India’s edible oil imports in February 2025 hit a four-year low, with soyoil and sunflower oil imports declining significantly, leading to the lowest inventory levels in three years. Palm oil imports, however, rose by 35.7% to 373,549 metric tons from January. The overall vegetable oil imports dropped 12% year-on-year to 899,565 metric tons. Lower imports have reduced edible oil stocks by 14% to 1.87 million tons as of March 1. India primarily sources palm oil from Indonesia, Malaysia, and Thailand, while soyoil and sunflower oil come from Argentina, Brazil, Russia, and Ukraine. Imports are expected to rise in March as traders work to replenish stocks.
Key Highlights (Precap):
* India’s edible oil imports hit a four-year low in February.
* Soyoil imports dropped 36%, and sunflower oil fell 20.8%.
* Palm oil imports surged 35.7% but couldn’t offset the decline.
* Edible oil stocks fell 14%, hitting a three-year low.
* March imports expected to rise as traders replenish inventory.
India’s edible oil imports have reached a four-year low, with February 2025 witnessing a significant drop in soyoil and sunflower oil shipments. According to the Solvent Extractors' Association of India (SEA), total vegetable oil imports fell 12% year-on-year to 899,565 metric tons, marking the lowest level since February 2021. This decline has led to a 14% drop in edible oil stocks, which now stand at 1.87 million tons, the lowest in over three years.
Despite the overall downturn, palm oil imports surged by 35.7% from January, reaching 373,549 metric tons. However, this increase was insufficient to offset the sharp decline in soyoil and sunflower oil imports, which fell by 36% and 20.8%, respectively. The dip in imports is attributed to lower demand and stock adjustments in the domestic market.
India, the world’s largest buyer of vegetable oils, sources palm oil mainly from Indonesia, Malaysia, and Thailand, while soyoil and sunflower oil are imported from Argentina, Brazil, Russia, and Ukraine. The declining imports have impacted market dynamics, with expectations of a rebound in March as traders look to rebuild stocks.
Experts predict a potential rise in palm oil and soyoil imports in the coming months, which could support global prices, particularly Malaysian palm oil and U.S. soyoil futures. The share of palm oil in total vegetable oil imports has already dropped to 43% in the first four months of the marketing year from 66% a year ago.
Finally
India’s edible oil market faces supply challenges due to reduced imports and depleting stocks. A rebound in March is expected as traders work to stabilize inventory levels and meet demand.
Above views are of the author and not of the website kindly read disclaimer
