[ad_1]
Pune, 5th October 2024: The import of edible oil has dropped significantly due to an increase in import duty by the central government. Palm oil imports have decreased by 34%, soybean oil by 15%, and sunflower oil by 49%.
According to a Reuters report, palm oil imports fell by 34% in September compared to August, with 5.30 lakh tonnes imported in August. This marks the lowest palm oil imports in the last six months. Soybean oil imports also dropped by 15% in September, down to 3.88 lakh tonnes. Sunflower oil imports have been hit the hardest, falling by 49% to 1.45 lakh tonnes—the lowest in the past ten months.
The hike in import duties by the Indian government, along with increased export duties from Indonesia and Malaysia, has made palm oil prices almost equivalent to those of soybean and sunflower oils. As a result, many edible oil companies have drastically reduced or halted imports of both refined and crude palm oil.
Sandeep Bajoria, executive head of Sunvin Group, explained that soybean and sunflower oil imports have decreased due to the remaining stock of approximately 30 lakh tonnes of oil that was imported at lower rates before the duty hike. Many edible oil companies and importers have canceled or postponed palm oil imports due to the increased tariffs. Similar trends are being seen with soybean and sunflower oils.
The import of palm oil is expected to pick up only after a reduction in palm oil prices. In contrast, imports of sunflower and soybean oils are gradually increasing, though importers are cautious about stockpiling. The current strategy is to import only as much oil as necessary.
While there has been a slight increase in imports ahead of Diwali in October, there is no threat of a shortage, as the country currently has around 30 lakh tonnes of edible oil in stock. India primarily imports palm oil from Indonesia, Malaysia, and Thailand, and sources soybean and sunflower oil from Argentina, Brazil, Russia, and Ukraine.
[ad_2]