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.
Refined oil imports
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.
Kharif acreage low
Mehta said India received higher rainfall in September after a deficit rainfall in August. Kharif acreage of oilseeds is slightly lower than last year at 193 lakh hectares ( 196 lakh hectares).
