Due to decrease in import of palm oil, there is a sharp decline in the stock of edible oils
15-May-2025 05:20 PM
New Delhi. The import of palm oil in India has been steadily declining for several months, leading to a significant drop in its stock levels and an overall decrease in the total stock of edible oils.
According to data from the Solvent Extractors Association of India (SEA), as of May 1, 2025, only 13.51 lakh tonnes of edible oils remained in the supply pipeline and at Indian ports — the lowest level in the past four years. From January to April 2025, monthly palm oil imports failed to cross 5 lakh tonnes.
The last time edible oil stock was at a similarly low level was on May 1, 2020, when it stood at 9.10 lakh tonnes. Typically, India maintains a sufficient edible oil stock to meet domestic demand for 31–32 days, but the current inventory can support less than 20 days of consumption. If imports do not increase in May, the prices of edible oils could rise.
India may need to raise imports of palm oil and soybean oil in the coming months, which could result in price increases in supplier countries.
This may create an upward trend in the benchmark futures prices of crude palm oil in Malaysia and crude degummed soybean oil in the United States.
In April 2025, palm oil imports dropped by 24.29 percent compared to March, settling at just 3,21,446 tonnes. However, according to the Executive Director of SEA, the reduced stock does not indicate a supply shortage within the country.
The decrease in imports and stock is partly due to the strong domestic crushing of mustard, which is leading to a rapid increase in mustard oil production.
Additionally, between 60,000 and 70,000 tonnes of refined edible oil are being imported monthly from Nepal by road. These imports directly enter the domestic market without passing through Indian ports, hence they are not reflected in port stock data.
Still, it is undeniable that edible oil imports in April 2025 saw a sharp year-on-year decline of 32 percent compared to April 2024.