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India’s edible oil imports for the 2023-24 season are projected to be between 160 to 165 lakh tonnes, according to the Solvent Extractors’ Association (SEA). Soybean farmers are facing challenges, as mandi prices have remained Rs.550-600 below the minimum support price (MSP) of Rs.4,892 per quintal for the past two months, causing unrest. To support farmers, the government has allowed states like Madhya Pradesh and Maharashtra to procure soybean at MSP, stabilizing prices slightly. SEA has recommended increasing import duties on edible oils by 20-25% to ensure better prices for farmers, while imports of palm oil have declined by 7%, and soft oil imports have seen a slight rise.

Key Highlights

* SEA expects India's edible oil imports to be between 160-165 lakh tonnes in 2023-24.

* Soybean prices remain below MSP, creating unrest among farmers.

* Government permitted key states to procure soybeans at MSP to support farmers.

* Palm oil imports declined by 7% while soft oil imports slightly increased.

* Experts suggest increasing import duties to benefit farmers and the industry.

India's edible oil imports for the 2023-24 season (November-October) are expected to remain stable between 160 to 165 lakh tonnes, according to the Solvent Extractors’ Association of India (SEA). BV Mehta, SEA's Executive Director, shared that imports from November to August have already reached 136.87 lakh tonnes, slightly lower than the previous year. Palm oil imports have seen a notable 7% decline, while soft oil imports have registered a modest increase.

In terms of price performance, soybean farmers are facing significant challenges. Over the past two months, soybean prices in the mandis have consistently been ?550-600 below the minimum support price (MSP) of ?4,892 per quintal, leading to growing unrest among farmers. To provide relief, the Indian government has permitted states like Madhya Pradesh and Maharashtra to procure soybean at MSP. This move has helped stabilize prices slightly, with rates improving to ?4,600-4,700 per quintal in recent days.

SEA has also suggested that increasing import duties on crude and refined edible oils by 20-25%, with a duty difference of at least 15%, could help further boost domestic prices and ensure farmers receive remunerative rates for their produce.

Finally

India's edible oil market remains under pressure, but government interventions and policy changes could help stabilize prices for both farmers and consumers.

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