Surge in soybean and sunflower oil imports as palm oil loses supremacy

Vadakara: Soybean and sunflower oil imports have surged as palm oil loses its dominance in edible oil imports. A comparison of the import statistics for November and December 2023 shows a significant decline in palm oil imports in 2024. While palm oil accounted for 72% of the imports in late 2023, it dropped to 48% in November and December 2024. In contrast, imports of sunflower oil and soybean oil surged from 28% to 52%. The prevailing market trend indicates that palm oil imports will continue to decline in January as well.

The reduction in palm oil imports is expected to benefit coconut oil, particularly in Southern states like Kerala. The increase in the import duty on edible oils by the central government has led to a rise in the price of coconut oil, which remains high. However, despite the rise in imports of more affordable oils like soybean and sunflower oil, the price of coconut oil has not significantly decreased.

One-month decrease of at least 3.41 lakh tonnes

According to data released by the Solvent Extractors' Association of India in January, palm oil imports were 8.41 lakh tonnes in November 2024, and this dropped to 5 lakh tonnes in December. In November and December 2023, India imported 17.63 lakh tonnes of palm oil, which decreased to 13.42 lakh tonnes in the same period in 2024. The import of sunflower and soybean oils increased from 6.92 lakh tonness to 14.33 lakh tonnes.

Soybean oil imports have increased significantly. Over the past two months, India has received 8.28 lakh tonnes of soybean oil, compared to just 3.02 lakh tonnes during the same months in 2023. Sunflower oil imports during the last two months amounted to 6.05 lakh tonnes.

In September 2024, the central government increased the import duty on edible oils to support local oilseed farmers, leading to a decrease in edible oil imports, particularly palm oil. However, the recent rise in imports of other edible oils has raised concerns in the domestic market. Currently, the price of one tonne of refined palm oil is $1,236, while crude palm oil is priced at $1,270. Meanwhile, the price of soybean oil stands at $1,123 and sunflower oil at $1,206 as of December.