Mumbai, 14 Jan (Commoditiescontrol): India's vegetable oil imports surged by 16% in the first two months of the 2024-25 oil year, reaching 2.86 million metric tons (MMT) compared to 2.47 MMT during the same period last year, according to data from the Solvent Extractors' Association of India. The increase reflects a notable shift in consumer preferences, with soybean oil gaining market share at the expense of crude palm oil.
In December 2024, total vegetable oil imports declined by 6% month-on-month to 1.23 MMT, down from 1.31 MMT in November. This was driven by reduced edible oil imports, including a sharp drop in crude palm oil, as tightening global supplies and elevated prices favored alternative oils like soybean oil.
Key Import Highlights (Nov-Dec 2024):
Edible Oils: 2.78 MMT (+13% YoY)
Non-Edible Oils: 83,105 MT (+404% YoY)
Total Imports: 2.86 MMT (+16% YoY)
Crude palm oil imports have faced pressure as higher prices and limited availability from major exporters like Malaysia and Indonesia reduced their competitiveness. In contrast, South American soybean oil has seen robust demand, supported by attractive pricing and steep discounts. The oversupply in the global soybean oil market has further facilitated the shift, enabling quick absorption of surplus stocks in India.
Market Insights:
Soybean oil’s growing dominance underscores a structural shift in India's vegetable oil market, with price-sensitive consumers opting for cost-efficient alternatives. Meanwhile, mustard sowing as of January 3, 2025, declined to 88.5 lakh hectares from 93.73 lakh hectares a year ago, reflecting changing cropping patterns amid evolving market dynamics.
India’s vegetable oil sector is poised for continued volatility as global supply-demand dynamics and domestic market preferences evolve. Soybean oil is likely to maintain its competitive edge, further challenging palm oil’s traditional stronghold.
(By Commoditiescontrol Bureau; +91-9820130172)