The Solvent Extractors' Association of India (SEA) data has showed that India’s import of vegetable oils (edible & non- edible) declined 7% to 899565 tons in February 2025 as compared to 965,852 tons in February 2024. This includes 885,561 tons of edible oils and 14,004 tons of non- edible oils in February 2025. Notably, this is the lowest monthly import since May 2020, when imports fell to 720, 976 tons due to Covid-19 pandemic.
For the first four months of the oil year 2024-25 (November 2024 - February 2025), total vegetable oil imports reached 4,807,798 tons, up 4% from 4,638,963 tons in the same period last year. However, in February 2025, import of edible oil, particularly palm oil further dropped to four-month lowest level, thanks to disparity in refining forced Indian importers to move to soft oils.
The recent drop in vegetable oil imports has been cushioned by high stock levels accumulated in India up to November 2024, which have now dropped below 2.0 million tons. The rapid depletion of stocks is expected to drive increased purchases, particularly of palm oil. Over the past few weeks, crude palm oil prices have strengthened slightly relative to landed costs in the Indian market. However, weak price competitiveness in the global market may limit Indian palm oil imports in the near term.
The growth in vegetable oil consumption is expected to slow down in 2024-25. The high price premium on palm oil has reduced both imports and consumption in recent months, leading to a sharp increase in the combined consumption of soybean oil and sunflower oil. Additionally, trade flows from Nepal have played a role this season. Nepalese exports of refined soybean oil to India-benefiting from duty-free access have increased. Similarly, exports of Vanaspati from Nepal and Sri Lanka to India have also picked up recently.
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