Fall In Global Prices of Edible Oil, Imports Increased 31% To 1.2 MT In July

According to industry data, edible oil imports increased 31% to 12.05 lakh tonnes in July despite a decline in palm, soybean, and sunflower oil prices worldwide since June. The import of edible oils stood at 9.17 lakh tonnes in the same month last year.

The Solvent Extractors' Association of India (SEA) said in a statement on Friday that the import of vegetable oils, including both edible and non-edible oils, increased by 24 percent to 1,214,353 tonnes in July of this year. It was 9,80,624 tonnes in July 2021 as compared to the same time last year. The oil marketing year runs from November to October.

During November 2021 to July 2022 period, the imports of edible oils rose to 96,95,305 tonnes from 93,70,147 tonnes in the year-ago period.

Out of the overall imports, the quantity of refined palm oil stood at 11,44,496 tonnes, 36,59,699 tonnes of crude palm oil, 33,30,556 tonnes of crude soyabean oil, and 15,03,627 tonnes of crude sunflower oil.

Refined palm oil imports increased from 43,271 tonnes to 11,44,496 tonnes in the first nine months of the 2021–22 oil marketing year.

When compared to the same period last year, the import of non-edible oils decreased by 2% to 2,79,688 tonnes from 2,84,489 tonnes.

“The total amount of vegetable oil imported over the first nine months of the oil year 2021–22, from November 2021–July 2022, was reported at 99,74,993 tonnes, up from 96,54,636 tonnes during the same period the previous year, “it said.

The overall amount of edible oil in stock increased by 48,000 tonnes as of August 1, 2022, from 22.56 lakh tonnes as of July 1.

In the past two months, there has been a significant drop in the price of edible oils on the global market, according to SEA. Prices for palm oil have decreased by USD 625 per tonne, soybean oil has decreased by USD 370 per tonne, and sunflower oil have decreased by USD 450 per tonne.

" The local price also moved in downward tandem in the last two months. RBD palm olein’s wholesale price reduced by about Rs 25,000 per tonne, while the prices of refined soybean oil and sunflower oil both fell by over Rs 20,000 per tonne,” said SEA.

According to the association, rupee depreciation since March and high freight for palm oil shipments partially restricted the passing on of full cost reduction benefits to importers and consumers.

India's primary sources of palm oil are Indonesia and Malaysia. Sunflower oil is mostly imported into the nation from Russia, Ukraine, and Argentina, and soybean oil is obtained from Brazil and Argentina.