Veg oil imports down 13% in February: SEA

India's vegetable oils import declined 13% in February, impacting prices due to reduced availability from main producers.

India's vegetable oils import fell 13% per cent year-on-year in February to nearly 9.75 lakh tonne, according to industry data.

In a statement on March 13, the Solvent Extractors' Association of India (SEA) said the import of vegetable oils (comprising edible oils and non-edible oils) in February stood at 9,74,85 tonne as compared to 11,14,481 tonne in the year-ago period.

Out of the total imports, the edible oil shipments fell to 9,67,852 tonne last month from 10,98,475 tonne in February 2023. Non-edible oils imports too fell to 7,000 tonne from 16,006 tonne in the year-ago period.

During November 2023-February 2024 period, the overall import of vegetable oils declined 21% to 46,47,963 tonne from 58,87,900 tonne in the corresponding period of the previous oil year. The oil marketing year runs from November to October.

Edible oils import fell to 46,15,551 tonne during the first four months of 2023-24 oil year from 58,44,765 tonne in the year-ago period. Non-edible oil imports dropped to 32,412 tonne during the November-February period of 2023-24 oil year from 43,135 tonne in the corresponding period of the previous year.

India meets more than 50% of its domestic requirements of edible oils through imports. The country imports palm oil from Indonesia and Malaysia. It imports soyabean oil from Argentina and Brazil.

"The decline of vegetable oil imports continued in February 2024. The availability of palm oil for edible oil requirements has come down as the main two producers Malaysia and Indonesia are diverting it for the production of biodiesel," SEA said. This might result in an increase in prices this year, it added.