Import of Vegetable Oils in India in Sept.,2023 – down by 5%

The Import of Vegetable Oils (edible & non-edible) for the month of September, 2023 reported at 1,552,026 tons compared to 1,637,239 tons in September 2022, consisting 1,494,086 tons of edible oils and 57,940 tons of non-edible oils i.e. down by 5%.

The overall import of vegetable oils during first eleven months of the oil year 2022-23, i.e. Nov’22.- Sept.’ 23 is reported at 15,673,102 tons compared to 13,013,465 tons during the same period of last year i.e. up by 20%.

Looking to import of edible oils in first eleven months at 154.69 lakh tons, will not be surprised to see record import of over 165 to 170 lakh tons during current oil year ending Oct.’23. Earlier India’s highest import was 151 lakh tons in 2016-17.

Import of Vegetable Oil (Edible & Non-edible) Nov.’22 – Sept. ’23 (Qty. in  MT)

Near Normal Rainfall & Kharif Sowing:

After deficit rain in August, higher rainfall received in September leading to Normal Rainfall at 94.4% LPA although country as a whole, recorded 5.7% less rainfall compared to normal. Kharif acreage is slightly lower than last year at 193 lakh ha. compared to 196 lakh ha. last year. Soybean and Castor acreage is marginally increased while Groundnut area reduced mainly in Saurashtra at the cost of higher acreage of Soybean.

August & Sept. 2023 – Record Import :

Despite ample domestic availability, a sharp drop in domestic edible oil prices has pushed the  demand, as reflected in the August and September data. Crude palm oil imports got little setback against soybean and other oils, totalling 7.05 lakh tons in Sept. ’23, down from 8.24 lakh tons in August ’23. Meanwhile, RBD Palmolien imports spiked from 2.17 lakh tons in July ’23 to 2.83 lakh tons in August ’23 but cooled down to 1.29 lakh tons in Sept.’23. Soybean Oil jumped to 3.59 lakh tons while Sunflower Oil after heavy import in August, down to 3.0 lakh tons in Sept.’23. This influx of imports is driven by the current low 5.5% duty on Crude Palm Oil, Soybean Oil, and Sunflower Oil, transforming India into a prime destination for excess oil supplies. The import of RBD Palmolein has surged to constitute over 25% to total palm imports. This surge has severely impacted the refining industry, which is grapping with massive overcapacity.

Domestic Stock Situation :

As on 1st September, 2023 Port and Pipeline stock was 37.35 lakh tons. The per capita consumption has increased with the fall in domestic prices of edible oils in last few months. While we are in process of compiling the port and pipeline stock as on 1st October,2023, our initial estimate is about 35.0 lakh tons. We will update the port and pipeline stock as on 1st October, 2023 as early as possible. Please bear with us.

Current Stock Position at Ports & Pipelines : (Qty. in ‘000 M.T.)

Import of Refined Oil Rising :-

Import of RBD Palmolein is rising fast. The overall refined oils (RBD Palmolein) reached at 13% (20.53 lakh tons) which was 5% (6.86 lakh tons) in 2020-21 and 3% (4.21 lakh tons) in 2019-20 only. This is seriously affecting working of domestic palm oil refining industry. The import of crude oil is also rising in last four month and reported at 134.15 lakh tons compared to 109.51 lakh tons in previous year.

Import of Refined & Crude Edible Oils (Ratio) Nov.’22 – Sept.’23 (Qty. in MT)

Sharp increased in Palm Oil Import :-

During Nov.’22 to Sept. ’23, import of palm products  increased sharply due to price parity and reported at 9,080,986 tons compared to  7,028,032 tons of same period of last year. The share of palm oil increased to 59% from 55%, also soft oils import increased marginally. In last six months, shipment of sunflower and soybean oils sharply increased and overall import during first eleven months of the current oil year at 6,387,926 tons compared to 5,635,813 tons last year.  The share of soft oils reduced to 41% from 45%.

Import of Palm Oil & Soft Oil (Ratio) Nov,’22 – Sept. ’23 (Qty. in MT)

Indonesia and Malaysia are major Suppliers of Palm Products to India :

Indonesia and Malaysia are the major suppliers of RBD Palmolein and Crude Palm Oil to India. During Nov.’22-Sept.’23, Indonesia was the major supplier and accounted for 3,504,542 tons of CPO (50%) and 1,718,111 tons of  RBD Palmolein (84%) followed by Malaysia of 2,408,144 tons of CPO (35%) and 302,084 tons RBD Palmolein (15%). Thailand is emerging as a regular supplier of crude palm oil to India and supplied 701,424 tons of CPO (10%) and 11,499 tons of RBD Palmolein (1%). In the case of Crude Soybean Degummed Oil; India imported 1,814,849 tons from Argentina (51%) while Brazil is emerging supplier of soybean oil to India and supplied  1,391,062 tons (39%) while for Crude Sunflower Oil, Russia is the leading supplier and supplied 922,243 tons (32%) followed by 487,304 tons from Ukraine (17%) and 461,122 tons from Argentina (16%).

Country-wise Import of Edible Oils Nov.’22 – Sept. ’23 (Qty. in MT) 

Average Prices and Rupee appreciation: (Price in US$/CIF Indian Port/Ton)