Edible Oil exports register smart growth in 2019-20 - Positive development for Oilseed Sector

Edible oils and Oilseed demand from overseas markets were quite strong during 2019-2020 which is clear from the recently released exports data from the Solvent Extractors’ Association of India (SEA) that shows that the country had earned Rs. 955.51 crore during 2019-20 from the exports – More than Rs. 320 crore from previous year’s exports revenue of Rs. 627 crore. Top consumers were Bhutan and Canada, purchasing soybean oil worth 5,708 tonnes and 2,193 tonnes respectively. India exported 9,822 tonnes of soybean oil during 2019-20 according to the SEA data. The exported quantity is Rs. 86.23 crore. In 2018-2019 Soybean oil exports recorded at 4,246 tonnes worth Rs. 38 crore. Therefore exports of Soybean oil has jumped by more than 100% year on year.

Mustard oil was sold to the overseas destinations in consumer packs of 5 kg at 3,681 tonnes worth Rs. 46.97 crore. It was exported mainly to the UAE with 963 tonnes and to the US with 445 tonnes. Even sesame oil and coconut oil exports from India recorded growth versus last year at 5,618 tonnes and 7,870 tonnes, respectively. Percentage increase in sesame oil and coconut oil exports year on year was over 12 per cent and 15 per cent, respectively.

The news of exports growth in edible oils is definitely seen as a positive development for India’s farmers engaged in oilseed cultivation, as it is helpful in realizing better prices for the crops and rise in average income levels of the oilseed farmers. As per the Solvent Extractors’ Association of India (SEA), India exported 12,521 tonnes of rice bran oil and small quantity of mahua and mango kernel oils worth Rs. 127 crore. In 2018-19, India exported 12,807 tonnes of rice bran oil. For Rice Bran oil, major overseas consumers are the US, Japan, Malaysia and Thailand. It may be noted that export of rice bran oil has been allowed in bulk since September 2015, which has helped in growth of exports.

An impressive bulk exports figure of Edible oils for year the recently ended financial year is certainly optimistic for the government, exporters as well as oilseed growers. For the government, this report brightens the prospects for enhancing the national GDP through dollar earnings in future, considering a similar market situation. For exporters and oilseed farmers, it translates into higher remuneration through respective sale deals if trend remains somewhat unchanged in years to come.

Edible oils are freely exportable in bulk, while mustard oil is allowed in consumer packs not exceeding 5 kg. India every year exports edible oils like groundnut oil, rice bran oil, sunflower oil mustard oil and small quantity of sesame oil as well. Major exports share in the recently ended financial year was Groundnut oil and exports from India generally totaled 38,226 tonnes, fetching Rs. 390 crore. Leading consumer for Ground nut oil was China is a major buyer (purchasing crude and processed ground nut oil) with 33,505 tonnes. India had exported 15,533 tonnes of groundnut oil worth Rs.128 crore last year.

Given below is the detailed list of Edible Oil exports from India in 2019-20 Financial (i.e. April to March period) along with comparisons from previous financial year.

Source: DGFT