Pricey palm oil pulls down edible oil imports by 17% during NovMar 202324

India’s edible oil imports declined by 17 per cent during the first five months of the oil year 202324 (NovemberOctober).

A hike in the price of palm oil in the past few weeks was one of the reasons for this decline.

Palm oil was expensive than sunflower by more than $70 a tonne in the international market.

Data available with Solvent Extractors’ Association of India (SEA) showed that India imported 57.65 lakh tonnes (lt) of edible oil during NovemberMarch of the oil year 202324 against 69.80 lt in the corresponding period of 202223, registering a decline of 17.41 per cent.

Total edible oil imports stood at 11.49 lt during March 2024 against 11.35 lt in March 202223, registering a growth of 1 per cent.

Record quantity of import of sunflower oil during the period added to this growth.

LOWER OUTPUT

Terming palm oil as the current price leader, BV Mehta, Executive Director of SEA, said lower production and stock of palm oil in Indonesia and Malaysia in the last few weeks resulted in short supply.

Stating that the third month future at BMD crossed 4,400 ringit per tonne, he said C and F price of crude palm oil (CPO) was quoted at $1,045 a tonne in India on April 5, while crude sunflower oil was available at $975 a tonne and crude soyabean oil at $1,025 a tonne. This led to shift in demand from palm oil to soft oils.

This is evident from the fact that a record quantity of sunflower oil was imported in the last two months at 2.97 lt in February and 4.46 lt in March, he said.

Overall, India imported 13.52 lt of sunflower oil during NovemberMarch 202324 against 11.17 lt in the corresponding period of the previous oil year.

Import of soyabean oil to India stood at 8.82 lt during the first five months of the oil year 202324 against 14.63 lt in the corresponding period of 202223.

PALM OIL VS SOFT OILS

The ratio between palm oil (including CPO and refined oil) and soft oils tilted in favour of soft oils during March.

Nearly 58 per cent of the import was soft oils and 42 per cent was palm oil.

Import of refined palm oil also reduced to 94,000 tonne in March from 1.25 lt in February. The overall import of refined palm oil was slightly lower at 8.87 lt during NovemberMarch 202324 against 9.89 lt in the corresponding period of the previous oil year.

India imported 48.78 lt of CPO during NovemberMarch 202324 against 59.91 lt in NovemberMarch 202223.