Despite an increase in the international prices of sunflower and soyabean oils, India’s total import of edible oils increased to 14.98 lakh tonnes (lt) in May 2024 against 13.04 lt in April 2024, recording a growth of 14.84 per cent.

However, the total edible oils import declined by 5.38 per cent during the first seven months of the oil year 2023-24 (November-October). Data compiled by Solvent Extractors’ Association of India (SEA) showed that India imported 85.67 lt of edible oils in the first seven months of the oil year 2023-24 against 90.55 lt in the corresponding period of the oil year 2022-23.

BV Mehta, SEA Executive Director, said the disruption in the soyabean oil supply from Argentina and Brazil in the last month has put pressure on International and domestic prices. In Argentina, soyabean oil supplies have been impacted due to workers’ strike. This has led to lower crushing. The recent flood in Brazil dented soyabean production and losses are estimated at 2.71 million tonnes (mt), he said.

The CIF price of crude soyabean oil was $1,000 a tonne in May against $989 a tonne in April. India imported 3.24 lt of crude soyabean oil in May against 3.85 lt in April. India’s import of crude soyabean oil was at 15.92 lt during the first seven months of the oil year 2023-24 against 20.44 lt in the corresponding period of the oil year 2022-23.

Sunflower oil supplies down

He said the supply of sunflower oil from Russia and Ukraine has reduced due to off season. The CIF price of crude sunflower oil was $987 a tonne in May against $970 a tonne in April. The country imported 4.10 lt of crude sunflower oil in May against 2.34 lt in April.

India’s import of crude sunflower oil was at 19.97 lt during the first seven months of the oil year 2023-24 against 16.62 lt in the corresponding period of the oil year 2022-23. “These recent developments have impacted the sentiments in the market and prices of both these oils went up during last one month,” he said.

Palm oil prices stagnant

However, he said, the prices of palm oil remained more or less stagnant both in international and domestic market. Palm oil constitutes major share of total edible oil import of India.

India imported 49.77 lt of palm oil (including RBD palmolein and crude palm oil) during the first seven months of the oil year 2023-24 against 53.48 lt in the corresponding period of the oil year 2022-23. This included 12.36 lt of RBD palmolein (11.86 lt) and 36.65 lt of crude palm oil (41.09 lt).

India imported 2.25 lt of RBD palmolein in May against 1.24 lt in April, and 5.32 lt of crude palm oil in May against 5.36 lt in April.

Mustard seed price up

Stating that the increase in the price of sunflower oil and soyabean oil jacked up the mustard seed price, he said the price was above the MSP (minimum support price) of ₹5,650 a quintal to over ₹6,200 a quintal. “It’s a positive signal to farmers for increasing oilseeds area in ensuing kharif season,” Mehta said.

Major exporters

India imported 17.10 lt of crude palm oil and 10.60 lt of RBD palmolein from Indonesia during the first seven months of the oil year 2023-24. This was followed by Malaysia at 14.92 lt of crude palm oil and 1.76 lt of RBD palmolein.

In the case of crude soyabean de-gummed oil, Argentina exported 8.36 lt and Brazil 5.77 lt to India during the period.

During the first seven months of the oil year 2023-24, Russian export of crude sunflower oil to India stood at 8.88 lt, followed by Romania at 5.41 lt, Ukraine at 2.62 lt and Argentina at 2.12 lt.

Related Topics