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India’s edible oil imports increased to 15.47 million tonnes (mt) in the first 11 months of the oil year 2022-23 (November to October) from 12.66 mt in the corresponding period a year ago, registering a growth of 22.15 per cent.
BV Mehta, Executive Director of Solvent Extractors’ Association of India (SEA), said looking at the import of edible oils at 15.47 mt in the first 11 months of the oil year 2022-23, it will not be a surprise to see a record import of over 16.5 mt to 17 mt during current oil year ending October. India’s highest import was at 15.1 mt in 2016-17.
Domestic demand up
Despite ample domestic availability, a sharp drop in prices has pushed the demand. This has been reflected in theAugust and September data, he said.
Crude palm oil (CPO) imports received a setback in September at 7.05 lakh tonnes (lt), down from 8.24 lt in August. Import of RBD palmolien increased from 2.17 lt in July to 2.83 lt in August. But it cooled down to 1.29 lt in September.
In September, import of soyabean oil jumped to 3.59 lt, and sunflower oil down to 3 lt. However, there was heavy import of sunflower oil at 3.65 lt in August.
He said this influx of imports is driven by the current low 5.5 per cent duty on CPO, soyabean oil, and sunflower oil, transforming India into a prime destination for excess oil supplies.
Refined oil imports up
The import of RBD palmolien has surged to constitute over 25 per cent of the total palm imports. This has severely impacted the refining industry, which is grappling with massive overcapacity, he said.
The overall refined oils (RBD palmolein) reached 13 per cent (20.53 lt) of the total edible oil imports during the first 11 months of the oil year 2022-23. This was at 5 per cent (6.86 lt) in 2020-21 and 3 per cent (4.21 lt) in 2019-20. Stating that the import of crude edible oil is also rising in last four months, he said the total crude edible oil imports stood at 134.15 lt during November-September of 2022-23 agaisnt 109.51 lt in the corresponding period of the previous oil year.
Palm products
On the increase in the import of palm oil products during November-September of 2022-23, he said the import increased sharply due to price parity. Import of palm oil products, including CPO and refined oils, increased to 9.08 mt during the first 11 months of 2022-23 against 7.03 mt a year ago. The share of palm oil in the total edible oil imports increased to 59 per cent from 55 per cent.
In last six months, import of sunflower and soyabean oils increased to 63.87 lt and during the first 11 months of the current oil year against 56.35 lt during the corresponding period of the previous oil year. He said the share of soft oils in the total edible oil imports reduced to 41 per cent from 45 per cent.
Ample domestic stock
As on September 1, the port and pipeline stock of edible oils was at 37.35 lt. He said the per capita consumption of edible oils has increased with the fall in domestic prices of edible oils in last few months.
“While we are in process of compiling the port and pipeline stock as on October 1, our initial estimate is about 35 lt,” he said.
Indonesia, top supplier
During November-September 2022-23, Indonesia supplied 35.04 lt of CPO and 17.18 lt of RBD palmolein, followed by Malaysia at 24.08 lt of CPO and 3.02 lt RBD palmolein. Stating that Thailand is emerging as a regular supplier of CPO to India, he said it supplied 7.01 lt of CPO and 11,499 tonnes of RBD palmolein.
In the case of crude soyabean degummed oil, India imported 18.14 lt from Argentina, and 13.91 lt from Brazil.
Russia supplied 9.22 lt crude sunflower oil to India during the first 11 months of 2022-23, followed by Ukraine at 4.87 lt, and Argentina at 4.61 lt.
Kharif acreage low
Mehta said India received higher rainfall in September after a deficit rainfall in August. Kharif acreage is slightly lower than last year at 193 lakh hectares compared to 196 lakh hectares of last year. Soyabean acreage and castor acreage are increased marginally, and groundnut acreage reduced mainly in Saurashtra at the cost of higher acreage of soyabean, he said.
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