Sharp decline in palm oil imports in India due to high prices in exporting countries
04-Oct-2024 11:43 AM
Mumbai. Due to a massive increase of 20 per cent in the basic import duty on edible oils by the Central Government on one hand and the rise in prices in top exporting countries like Indonesia and Malaysia on the other, there was a sharp decline of almost one-third in palm oil imports in India during the month of September as compared to August. India is the largest importer of vegetable oils in the world.
According to dealers-analysts of the industry-trade sector, the total import of palm oil products in the country during September 2024 came down to around 5.30 lakh tonnes, which is about 34 percent less than the imports of August. Usually the price of palm oil remains below soybean oil and sunflower oil, but in September it went up and the offer price of palm oil for October shipment is also running high, due to which its import may be affected.
In comparison to August, during the month of September, the import of soybean oil is estimated to have fallen by 15 percent to 3.88 lakh tons and the import of sunflower oil is estimated to have fallen by 49 percent to 1.45 lakh tons. In this way, there is a possibility of a huge decline in the import of all three major oils. According to analysts in the industry and trade sector, the total import of edible oils in September fell by 31 percent to around 10.60 lakh tons compared to August.
The above data is of critics and analysts. Around mid-October, a leading industry body - Solvent Extractors Association of India (C) will release a monthly report in which a detailed account of the import of edible oils during the month of September will be presented. Only after that a clear picture of the import will be available. According to analysts, the price of edible oils in the exporting countries should have fallen when the import duty increased in India, but this time the situation is seen to be opposite, due to which the problems of Indian refiners have started increasing.