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The recent drop in vegetable oil imports has been cushioned by high stock levels accumulated in India up to November 2024. India imported 8% less edible oils in February at 8.86 lakh tonnes as compared to 9.59 lakh tonnes in the same period last year, according to data from the Solvent Extractors' Association of India.
Imports of vegetable oils—which include both edible and non-edible oil—declined 7% in February to nearly 9 lakh tonnes, compared to 9.66 lakh tonnes in February 2024, the industry body's data showed.
"Notably, this is the lowest monthly import since May 2020, when imports fell to 7,20,976 tonnes due to the Covid-19 pandemic," the SEA's statement said on Tuesday.
For the first four months of the oil marketing year 2024–25 from November, the total vegetable oil imports touched 48.1 lakh tonnes, an increase of 4% from 46.4 lakh tonnes in the same period of the preceding oil year.
"The recent drop in vegetable oil imports has been cushioned by high stock levels accumulated in India up to November 2024, which have now dropped below 2 million tonnes. The rapid depletion of stocks is expected to drive increased purchases, particularly of palm oil," the SEA said.
Price Effect On Palm Oil Imports
Over the past few weeks, crude palm oil prices have strengthened slightly relative to landing costs in the Indian market. "However, weak price competitiveness in the global market may limit Indian palm oil imports in the near term," it added.
The association said the growth in vegetable oil consumption is expected to slow down in 2024-25. "The high price premium on palm oil has reduced both imports and consumption in recent months, leading to a sharp increase in the combined consumption of soybean oil and sunflower oil," the SEA said.
Source: Online/GFMM
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