Vegetable oil imports down 13% in February to 9.75 lakh tonne: SEA

India's vegetable oils import fell 13 per cent year-on-year in February to nearly 9.75 lakh tonne, according to industry data. In a statement on Wednesday, Solvent Extractors' Association of India (SEA) said the import of vegetable oils (comprising edible oils and non-edible oils) during February stood at 9,74,85 tonne as compared to 11,14,481 tonne in the year-ago period.

Out of the total imports, the edible oil shipments fell to 9,67,852 tonne last month from 10,98,475 tonne in February 2023.

Non-edible oils imports too fell to 7,000 tonne from 16,006 tonne in the year-ago period.

During November 2023-February 2024 period, the overall import of vegetable oils declined 21 per cent to 46,47,963 tonne from 58,87,900 tonne in the corresponding period of the previous oil year.

Oil marketing year runs from November to October.

Edible oils import fell to 46,15,551 tonne during the first four months of 2023-24 oil year from 58,44,765 tonne in the year-ago period.

Non-edible oils import dropped to 32,412 tonne during November-February period of 2023-24 oil year from 43,135 tonne in the corresponding period of the previous year.

India meets more than 50 per cent of its domestic requirements of edible oils through imports.

The country imports palm oil from Indonesia and Malaysia. It imports soyabean oil from Argentina and Brazil.

"The decline of vegetable oil imports continued in February 2024. The availability of palm oil for edible oil requirements has come down as the main two producers Malaysia and Indonesia are diverting it for the production of biodiesel," SEA said.

This might result in an increase in prices this year, it added.

"Palm oil output in Indonesia and Malaysia, which account for a bulk of global production is likely to either rise marginally in 2024 or decline from last year's level, as ageing plantations and lack of expansion cap output," SEA said.

Import of soyabean oil from Argentina increased sharply in February 2024, while import from Brazil declined due to growing requirements of the domestic biofuel industry.