33% surge in India’s vegetable oil imports

India’s vegetable oil imports surged by 33% Y-o-Y, reaching a total of 18.66 lakh tonnes. This increase can be attributed to several factors, including reduced import duties and a resurgence in demand driven by a decline in domestic prices. 

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In August, India witnessed a notable 33% Y-o-Y increase in vegetable oil imports, totalling 18.66 lakh tonnes. This remarkable growth was spurred by a combination of factors, including the reduction in import duties and a revival in demand, which came about as a result of declining domestic prices. India, being the world’s largest buyer of vegetable oil, imported 14.01 lakh tonnes of vegetable oil in August 2022.

During the initial ten months of the 2022-23 oil year (from November to October), India experienced a significant increase in its total vegetable oil imports. The figures rose by 24%, reaching a total of 141.21 lakh tonnes, in contrast to the 113.76 lakh tonnes recorded during the same period in the previous year.

The Solvent Extractors’ Association (SEA) reported that out of the vegetable oil imports conducted in August, edible oils accounted for 18.52 lakh tonnes, while non-edible oils stood at 14,008 tonnes. This data illustrates the substantial growth in India’s vegetable oil imports during the specified period. In total, palm oil imports reached 11.28 lakh tonnes in August.

“Looking to import of edible oils in first ten months at 141.21 lakh tons, it will not be surprised to see a record import of over 160 to 165 lakh tons during current oil year ending October 2023,” according to the SEA’s report.