India may reduce import of vegetable oils in 2024/25 FY

According to dealers' preliminary estimates, after a 30% drop in September, imports of vegetable oils to India rose sharply in October amid heightened holiday demand and the need to replenish stocks.

 

Thus, import of palm oil increased by 59% to 840,000 tons, and sunflower oil - by 57%, while soybean oil supplies decreased by 10%.

 

Experts of the SEA Association believe that in FY 2024/25, India will reduce its import of vegetable oils to 15 million tons, as favorable weather will allow it to increase its own production of oil crops by approximately 3-4 million tons.

 

In FY 2023/24 (which ended in October), India imported 16.5 million tons of vegetable oils, confirming its status as the world's largest buyer of these products. Moreover, the import of palm oil in the 2023/24 MR decreased compared to the previous season from 9.8 to 9.2 million tons, while the import of sunflower oil increased from 2.9 to 3.5 million tons.

 

Almost 60% of the volume of vegetable oils imported by the country is palm oil, but due to its high prices this year, buyers preferred sunflower oil. Therefore, palm oil will lose 2-3% of its market share, which will be taken by soft oils due to the lower price.

 

The base price of palm oil in Malaysia has increased by 30% since the beginning of the year, so further increases will reduce demand from low-income buyers.