India’s demand for edible oil will grow at 2-3% per annum

India’s edible oil consumption is expected to grow at an annualized rate of 2-3% as edible oils remain affordable despite higher import duties, Reures reported.

On Friday, New Delhi raised the basic import tax on crude and refined edible oils by 20% to protect farmers hit by low oilseed prices. But demand will remain strong as the peak festival season approaches. Despite the duty hike, edible oil prices remain affordable, says Sanjeev Asthana, CEO, Patanjali Foods Ltd.

“The demand for edible oils may grow 2-3% in the 2024-2025 marketing year starting November 1 due to rising population and wealth,” he said.

The country’s palm oil imports in 2024-2025 could reach 9-10 million tons from around 9 million tons this year as the tropical oil is likely to regain market share lost to sunflower oil due to higher premium, he said.

India’s sunflower oil imports are expected to rise to a record 3.6 million tons this year from 3 million tons a year earlier.

Abundant supplies of sunflower oil from Russia and Ukraine have brought down prices and made it competitive with other oils.

Asthany predicts soybean oil imports next year will remain broadly stable at around 3 million tons.

India’s soybean crop in 2024 could rise to 11 million tons from about 10 million tons last year if the weather remains favorable over the next few weeks, he said.

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Tags: supply and demand balance, India, edible oils