India’s edible oil imports hit 4-year lows

India’s edible oil imports fell to a four-year low in February, driven by a decline in soybean and sunflower oil imports, pushing the country’s total edible oil imports down 12% to 884,000 tonnes in February, The Economic Times reported.

The publication estimates that soybean oil imports fell 36% month-on-month to 284,000 tonnes, the lowest in eight months, while sunflower oil imports fell 22% to 226,000 tonnes, the lowest in five months. Palm oil imports, on the other hand, rose 36% month-on-month to 374,000 tonnes in February. The rise comes after a sharp fall in January to a 13-year low.

Lower-than-normal imports for the second month in a row are tightening stockpiles and could force India to increase purchases in the coming months, the agency’s sources predict. Dealers estimate that lower imports in February have pushed India’s edible oil stocks down 26% month-on-month to 1.6 million tonnes as of March 1. This is also the lowest in more than four years. Experts expect that after unusually low imports in January and February, driven by rising prices and increased domestic supplies, the country’s purchases will begin to pick up from March.

India mainly sources palm oil from Indonesia, Malaysia and Thailand, while soybean and sunflower oils come from Argentina, Brazil, Russia and Ukraine. The Edible Oils Association of India (SEA) plans to release import data for February by mid-March.

Tags: imports, sunflower oil, soybean oil, India, palm oil