Edible Oil Imports – 2023-24 (Nov.-Oct.) at 15.96 Million Tons – A Decrease of 500,000 Tons: SEA
13-Nov-2024 02:51 PM
Edible Oil Imports – 2023-24 (Nov.-Oct.) at 15.96 Million Tons – A Decrease of 500,000 Tons: SEA
The import of edible oils during the oil year 2023-24 (Nov 2023 to Oct 2024) has been estimated at 15.96 million tons, which is 500,000 tons lower than the previous year's figure of 16.47 million tons. This reduction in imports was expected due to a larger domestic oilseed crop and higher oil prices, which have somewhat squeezed demand, particularly among lower-income segments of society.
Forecast for Decreased Imports in Coming Years
India requires about 1.0 million tons (10 lakh tons) of additional edible oils each year to meet the growing demand due to population growth and increased per capita consumption. Despite this, the total import of edible oils (including both edible and non-edible oils) during the 2023-24 oil year stood at 16.23 million tons (162.3 lakh tons), compared to 16.71 million tons (167.1 lakh tons) in 2022-23. This marks a 3% decline in edible oil imports.
Imports Likely to Decrease Further in 2024-25
Looking ahead to 2024-25, the import of edible oils could decrease even further, with an estimated reduction of around 1 million tons (10 lakh tons). This is expected due to the anticipated improvement in domestic production and potential pressure on consumer purchasing power, which could dampen overall demand. The primary factors driving the reduction are higher domestic production and rising oil prices, which are influencing demand trends.
Stock at Ports
India requires approximately 2.1 million tons (21.0 lakh tons) of edible oils every month, and the country typically maintains a stock for 30-35 days to meet demand.
Domestic Stock as of November 1, 2024
As of November 1, 2024, the estimated domestic stock of edible oils at various ports stood at 657,000 tons. This stock included:
- 259,000 tons of Crude Palm Oil (CPO)
- 101,000 tons of RBD Palmolein
- 133,000 tons of Degummed Soybean Oil
- 164,000 tons of Crude Sunflower Oil
Pipeline Stock
In addition to the port stock, the pipeline stock—held with factories, wholesalers, distributors, and retailers—is estimated at 1.75 million tons (17,51,000 tons).
Total Stock
The total edible oil stock as of November 1, 2024, was 2.4 million tons (24,08,000 tons), which is a decrease of 46,000 tons from the 2.45 million tons (24,54,000 tons) reported on October 1, 2024.
In conclusion, although the stock levels remain healthy and sufficient to meet demand, there has been a slight reduction in both imports and stocks, reflecting improved domestic production and changes in consumer demand due to price fluctuations.