Import of edible oils during Oil Year 2023-24, as predicted earlier, reduced to 159.6 lakh tons from 164.7 lakh tons compared to previous year, thanks to larger domestic oilseed crops and higher price squeezed the demand to some extent particularly in lower segment of the society. India needs annually about an additional 1.0 million tons (10.0 lakh tons) of edible oils to meet the growing population and increase in per capita consumption.
Import of vegetable oils during Oil Year 2023-24 (Nov.’23 to Oct.’24) i.e. edible oil and non-edible oil combined reported at 162.3 lakh tons (16.2 MnT) compared to 167.1 lakh tons (16.7 MnT) during 2022-23 i.e. down by 3%.
Import of Vegetable Oil (2018-19 To 2023-24) (Qty Lakh Tons)
| Vegetable Oils | 2023-24 | 2022-23 | 2021-22 | 2020-21 | 2019-20 |
| Edible Oils | 159.6 | 164.7 | 140.3 | 131.3 | 131.8 |
| Non-edible (CPS, PFAD, CPKO & Others) | 2.7 | 2.4 | 3.8 | 4.0 | 3.5 |
| Total | 162.3 | 167.1 | 144.1 | 135.3 | 135.3 |
Import Cost to Exchequer :
To bridge the gap between supply and demand, India resorted to imports since 1990s. In the initial period, the import volume was very low. However, in last 20 years (2003-04 to 2023-24), import volume has increased by 2.2 times while cost of import has gone up nearly 13 times. In 2023-24, India had to spend nearly Rs. 1.31 lakh crores (US$ 15.9 Bn) for import of 160 lakh tons (16.0 MnT) of edible oils.
Value-wise Import of Edible Oil (2019-20 To 2023-24)
| Vegetable Oils | 2023-24 | 2022-23 | 2021-22 | 2020-21 | 2019-20 |
| Edible Oils in Lakh Tons | 159.6 | 164.7 | 140.3 | 131.3 | 131.8 |
| Value in Rs. Crores (Est.) | 131,967 | 138,424 | 156,800 | 117,225 | 71,625 |
| Value in US$ Bn. (Est.) | 15.90 | 16.65 | 19.60 | 15.60 | 9.95 |
In last five years, overall import increased from 132.0 lakh tons in 2019-20 to 160.0 lakh tons in 2023-24 ending with 31st Oct.,2024. The major change in last five years is sharp increased in import of RBD Palmolein from 4.2 lakh tons to 19.3 lakh tons, thanks to inverted duty structure at origins and lower duty difference between refined and crude oils at 8.25% in India encouraged larger shipment of RBD Palmolein into India lead to increase in overall palm oil shipment from 72.0 lakh tons to 90.2 lakh tons in 2023-24. The soft oils share increased from 59.0 lakh tons to 69.5 lakh tons..
Import of Edible Oils (Nov.-Oct.) (Qty.in ‘000 Tons)
| Oil | 2023-24 (Nov.-Oct) |
2022-23 (Nov.Oct) |
2021-22 (Nov.Oct) |
2020-21 (Nov.-Oct) |
2019-20 (Nov.-Oct) |
| RBD Palmolein | 1,931 | 2,107 | 1,841 | 686 | 421 |
| Crude Palm Oil | 6,970 | 7,588 | 5,994 | 7,491 | 6,666 |
| C.P.K.O | 114 | 94 | 80 | 143 | 130 |
| Soybean Oil | 3,441 | 3,676 | 4,171 | 2,866 | 3,384 |
| Sunseed Oil | 3,506 | 3,001 | 1,944 | 1,894 | 2,519 |
| Rapessed Oil | -- | -- | -- | 52 | 55 |
| Total | 15,962 | 16,466 | 14,030 | 13,132 | 13,175 |
The share of refined oil increased from 3% to 12% in last five year, while share of crude oil decreased to 88% from 97%.
Current Stock Position at Ports & Pipelines :
India needs about 21.0 lakh tons (2.1 MnT) of edible oils per month and operating at 30-35 days inventory. Domestic Stock as of 1st Nov., 2024, of edible oils at various ports provisionally estimated at 657,000 tons,comprising 259,000 tons of CPO, 101,000 tons of RBD Palmolein, 133,000 tons of Degummed Soybean Oil, and 164,000 tons of Crude Sunflower Oil. Additionally, the pipeline stock including with factories, wholesalers, distributors and retailers estimated at 1,751,000 tons. The total stock as of 1st Nov., 2024 stands at 2,408,000 tons, decreased by 46,000 tons from the 2,454,000 tons reported as on 1st Oct., 2024.
(Qty. in ‘000 M.T.)
| 1st Nov. 2024 |
1st Oct. 2024 |
1st Sept. 2024 |
1st Aug. 2024 |
1st July 2024 |
1st June 2024 |
1st May 2024 |
1st Apr. 2024 |
1st Mar. 2024 |
1st Feb. 2024 |
1st Jan. 2024 |
1st Dec 2023 |
1st Nov 2023 |
One year change |
|
| Port Stock | 657 | 820 | 1041 | 988 | 713 | 668 | 603 | 590 | 622 | 854 | 948 | 985 | 1075 | (-) 418 |
| Pipelines | 1751 | 1634 | 1884 | 1914 | 1860 | 1749 | 1721 | 1725 | 1755 | 1795 | 1949 | 1975 | 2064 | (-) 313 |
| Total Stock | 2408 | 2454 | 2925 | 2902 | 2573 | 2417 | 2324 | 2315 | 2377 | 2649 | 2897 | 2960 | 3139 | (-) 731 |
Indonesia – Largest Exporters of Palm Oil :
Indonesia and Malaysia are the primary suppliers of RBD Palmolein and Crude Palm Oil (CPO) to India. During the period from Nov., 2023 to Oct,2024, Indonesia, the leading supplier, shipped 3,192,490 tons of CPO and 1,633,197 tons of RBD Palmolein. followed by Malaysia with 2,869,567 tons of CPO, 293,057 tons of RBD Palmolein, and 85,453 tons of CPKO. Crude Soybean Degummed Oil, primarily India imported from Argentina 2,147,399 tons, followed by Brazil 949,415 tons while Crude Sunflower Oil, the main sources were Russia 1,806,298 tons, followed by Romania 629,875 tons, Ukraine 560,896 tons, and Argentina 395,356 tons.
Country-wise Import of Edible Oils Nov.’23 – Oct. ’24 (Qty. in MT)
| Country | RBD Palmolein |
Crude Palm Oil |
Crude Palm Kernel Oil |
Crude Soybean Oil | Crude Sunflower Oil | Crude Rapeseed Oil |
Total |
| Indonesia | 1,633,197 | 3,192,490 | 4,500 | -- | -- | -- | 4,830,187 |
| Malaysia | 293,057 | 2,869,567 | 85,453 | -- | -- | -- | 3,248,077 |
| Thailand | 5,000 | 720,247 | 18,644 | 36,010 | -- | -- | 779,901 |
| Argentina | -- | -- | -- | 2,147,399 | 395,356 | -- | 2,542,755 |
| Brazil | -- | -- | -- | 949,415 | 4,500 | -- | 953,915 |
| Ukraine | -- | -- | -- | 15,000 | 560,896 | -- | 575,896 |
| Romania | -- | -- | -- | 8,000 | 629,875 | -- | 637,875 |
| Russia | -- | -- | -- | 197,978 | 1,806,298 | -- | 2,004,276 |
| Others | -- | 187,726 | 5,693 | 87,001 | 109,268 | -- | 389,688 |
| Total | 1,931,254 | 6,970,030 | 114,290 | 3,440,803 | 3,506,193 | -- | 15,962,571 |
Average Prices and Rupee depriciation : (Price in US$/CIF Indian Port/Ton)
| Oils | Oct 2024 |
Sept 2024 |
Aug. 2024 |
July 2024 |
June 2024 |
May 2024 |
Apr 2024 |
Mar 2024 |
Feb 2024 |
Jan 2024 |
Dec 2023 |
Nov 2023 |
Oct 2023 |
Year One change |
| RBD Palmolein | 1135 | 1038 | 980 | 949 | 924 | 911 | 972 | 988 | 903 | 885 | 858 | 876 | 849 | (+) 286 |
| Crude Palm Oil | 1170 | 1071 | 1011 | 979 | 954 | 951 | 999 | 1018 | 933 | 911 | 883 | 897 | 867 | (+) 303 |
| Crude Soybean Oil | 1154 | 1045 | 1015 | 1054 | 1049 | 1000 | 989 | 995 | 924 | 939 | 976 | 1068 | 986 | (+) 168 |
| Crude Sunflower Oil | 1168 | 1070 | 1019 | 1043 | 1065 | 987 | 970 | 964 | 920 | 933 | 945 | 979 | 920 | (+) 248 |
| Crude Rapeseed Oil | NQ | NQ | NQ | 1049 | 1039 | 1012 | 1022 | 1028 | 984 | 1000 | 1002 | 1031 | 1037 | (+) 12 |
| FE: 1US$ =(Average) | 84.00 | 83.79 | 83.88 | 83.59 | 83.46 | 83.39 | 83.40 | 83.02 | 82.95 | 83.11 | 83.25 | 83.26 | 83.21 | (+) 0.79 |
In one year, international price firmed up due to various reasons which reflected rise in domestic prices and also reduction in import to some extent.
Recent Policy Changes - Import Duty Revision :-
To support the domestic farmers to receive the remunerative prices the Indian Government in Sept.’24 increased the import duty on edible oils by 22%. Also the Government has further raised the minimum support price on oilseeds to encourage the domestic production.
Effective Import Duty Structure on Edible Oil from 20.8.2021 to 14.9.2024
| Product | Duty w.e.f. 14.9.2024 |
Duty w.e.f. 15.6.2023 |
Duty w.e.f. 24.5.2022 |
Duty w.e.f. 13.2.2022 |
Duty w.e.f. 20.12.2021 |
Duty w.e.f. 14.10.2021 |
Duty w.e.f. 11.9.2021 |
Duty as on 20.8.2021 |
| Crude Palm Oil | 27.50% | 5.50% | 5.50% | 5.50% | 8.25% | 8.25% | 24.75% | 30.25% |
| RBD Palmolein | 35.75% | 13.75% | 13.75% | 13.75% | 13.75% | 19.25% | 35.75% | 41.25% |
| RBD Palm Oil | 35.75% | 13.75% | 13.75% | 13.75% | 13.75% | 19.25% | 35.75% | 41.25% |
| Crude Soybean Oil | 27.50% | 5.50% | Nil @ | 5.50% | 5.50% | 5.50% | 24.75% | 30.25% |
| Refined Soybean Oil | 35.75% | 13.75% | 19.25% | 19.25% | 19.25% | 19.25% | 35.75% | 41.25% |
| Crude Sunflower Oil | 27.50% | 5.50% | Nil @ | 5.50% | 5.50% | 5.50% | 24.75% | 30.25% |
| Refined Sunflower Oil | 35.75% | 13.75% | 19.25% | 19.25% | 19.25% | 19.25% | 35.75% | 41.25% |
| Crude Rapeseed Oil | 38.50% | 38.50% | 38.50% | 38.50% | 38.50% | 38.50% | 38.50% | 38.50% |
| Refined Rapeseed Oil | 49.50% | 49.50% | 49.50% | 49.50% | 49.50% | 49.50% | 49.50% | 49.50% |
Projection for 2024-25 :
With normal monsoon, India in current kharif season of 2023-24, harvesting nearly 12.5 MnT of soybean and 9.5 MnT of Groundnut (in shell basis) and expected to harvest 12.5 to 13.0 MnT of Rapeseed in rabi season. Overall oilseeds production during 2024-25 may go up by 3.5 MnT. The bumper crop likely to augment the domestic availability and help to reduce the import demand by a Million tons (10.0 lakh tons) in 2024-25.
Import of Non-edible Oils :
P.F.A.D. and RBD Palm Stearin are the major non-edible oils being imported by the Soap and Ole-chemical industry. Import of Non-edible oils increased by 15% during the 2023-24 and is reported at 272,244 tons compared to 237,213 tons in previous year (2022-23). The import of RBD Palm Stearin sharply increased to 61,389 tons compared to 16,350 tons during the same period of last year 2022-23.
Import of Non-edible Oil (Nov.- Oct.) (2019-20 To 2023-24) (Qty. in M.T.)
| Oil | 2023-24 (Nov.-Oct.) |
2022-23 (Nov.-Oct.) |
2021-22 (Nov.-Oct.) |
2020-21 (Nov.-Oct.) |
2019-20 (Nov.-Oct.) |
| P.F.A.D. | 191,972 | 216,083 | 296,953 | 356,221 | 269,352 |
| P.K.F.A.D. | 4,998 | 4,780 | 9,880 | 8,012 | 254 |
| C.P.S. | -- | -- | 12,051 | 5,000 | 13,246 |
| C.P.K.O. | -- | -- | -- | 1,498 | --- |
| RBD Palm Stearin | 61,389 | 16,350 | 60,710 | 26,941 | 58,320 |
| Others | 13,885 | -- | 1,000 | 2,150 | 8,000 |
| Total | 272,244 | 237,213 | 380,594 | 399,822 | 349,172 |
Major Observations : 2024-25 – Import likely down by a Million Tons.
- India was fortunate to have normal rains in last four straight years. In the current oil year 2023-24, the average production of oilseeds is estimated to be about 38 million tons (L.Y. 34.2 MnT), apart from 11.0 MnT of cottonseeds and half a MnT of Copra (Coconut).
- In India, current edible oil consumption is about 25.5 – 26.0 MnT, growing at 3% to 4% per annum. By 2029-30, India may need 28-30 MnT while local production is expected to be 15-17 MnT.
- India will continue to import edible oils to bridge the gap between demand and supply.
- Indian Government is focusing on increasing the domestic production of palm oil with an aim to produce 2.8 MnT by 2029-30 to meet the growing demand.
- In Oil year 2023-24 (Nov.’23 to Oct.’24), the import has reduced by a half a million tons due to better crop in previous year and also demand is squeezed due to high price in second half of the year.
- In Oil Year 2024-25(Nov-Oct), considering the likely record domestic oilseeds crop, import may be less by a million tons at 15.0 MnT.
- The quantum of type of oil imports will depend on the price parity and the availability in international market.
