In June, India witnessed a substantial increase in its import of edible oils, with a growth rate of 39.31% compared to the same period last year. The Solvent Extractors’ Association of India (SEA), an industry body, reported that the import volume reached 13.11 lakh tonnes, marking a significant rise from 9.41 lakh tonnes recorded in June 2022.
The SEA statement also revealed that the overall import of vegetable oils, including both edible and non-edible varieties, experienced a remarkable surge of 49%. The total import volume in June stood at 13.14 tonnes, compared to 9.91 lakh tonnes during the corresponding month in the previous year. Among the total imports, 2,900 tonnes consisted of non-edible oils, primarily imported by the soap and oleo-chemical industries.
This surge in edible oil imports can be attributed to the escalating demand within the Indian market. The consumption of edible oils in the country has been steadily increasing due to various factors, including population growth, changing dietary preferences, and rising awareness regarding the health benefits of using edible oils in cooking and food preparation.
India is one of the world’s largest consumers and importers of edible oils, as domestic production is unable to meet the growing demand. The country heavily relies on imports to bridge the gap between supply and demand. Edible oil imports primarily include palm oil, soybean oil, sunflower oil, and other vegetable oils, which are sourced from countries such as Indonesia, Malaysia, Argentina, and Ukraine.
The pandemic-induced disruptions in global supply chains, along with adverse weather conditions affecting domestic oilseed crops, have further amplified India’s dependence on imports. This has led to an increased reliance on international markets to meet the rising demand for edible oils.
The rising cost of edible oils has also played a role in the surge of imports. The prices of edible oils have been on an upward trajectory due to factors like increasing global demand, supply constraints, and escalating transportation costs. The higher import volume is an attempt to mitigate the impact of rising prices and ensure a consistent supply of edible oils in the domestic market.
The SEA, as the representative body of the Indian oilseed processing industry, has been closely monitoring the import trends and their implications on the domestic sector. They have been advocating for measures to support the domestic oilseed industry, including enhancing productivity, promoting sustainable cultivation practices, and reducing dependence on imports.
The Indian government has also taken various initiatives to address the challenges faced by the domestic edible oil sector. These measures include providing support to farmers for increasing oilseed production, implementing policies to encourage domestic processing of oilseeds, and exploring opportunities for diversification of oilseed crops.
India’s import of edible oils witnessed a significant growth of 39.31% in June compared to the same period last year. The surge in imports can be attributed to the escalating demand within the country, driven by factors such as population growth, changing dietary preferences, and awareness of the health benefits of edible oils. The reliance on imports is further exacerbated by disruptions in global supply chains and adverse weather conditions affecting domestic oilseed crops. To mitigate these challenges, industry bodies and the government are actively working to enhance domestic oilseed production and reduce dependence on imports in the long run.
