India imported a record 16.47 million tons of vegetable oil for the 2022/23 season (November 2022-October 2023), up 17.4% from the previous crop year. This was reported by the National Association of Producers SEA (Solvent Extractors’ Association of India) on Monday.
Increase in domestic consumption
According to available information, the country imported maximum volumes of palm and sunflower oil during the reporting period – 9.79 million tons (+24% YoY) and 3 million tons (+54%), respectively. Experts attribute the growth of imports of vegetable oils by India to the increase in domestic consumption and competitive prices for these products on the world market.
As for soybean oil, according to SEA, it was purchased in MY 2022/23 less than a year earlier – 3.68 million tons (-12% to MY 2021/22). The product traded at a premium to palm and sunflower oil for most of the past crop year.
“Last season, Indian mills were actively buying oil from November 2022 to January 2023 and July to September this year as prices in the global market were attractive,” said Rajesh Patel, managing partner, GGN Research. However, he emphasized that purchases declined in October due to increased inventory in the market.
According to SEA data, by November 1, domestic vegetable oil stocks stood at 3.3 million tons against 2.46 million tons a year earlier.
Indonesia, Malaysia and Thailand are the main suppliers of palm oil to India. Soybean oil is predominantly purchased from Argentina and Brazil. Sunflower oil is purchased from Ukraine and Russia.