Key facts
- India's edible oil imports increased by 6.7% in May to 13.39 lakh tonnes.
- Crude soyabean oil imports were the primary driver of the increase.
- Total vegetable oil imports rose 8% in May.
- Government tariff adjustments on palm oil are encouraging crude oil imports.
- Refined oil imports from Nepal continue due to preferential duty.
India's edible oil imports saw a notable increase of 6.7% in May, reaching approximately 13.39 lakh tonnes. This rise was primarily attributed to a surge in crude soyabean oil shipments, which became more competitive as the price difference with palm oil narrowed. Overall vegetable oil imports, encompassing both edible and non-edible varieties, also climbed by 8% to 13.65 lakh tonnes in May compared to the previous year.
For the first seven months of the current oil year (November to May), total vegetable oil imports grew by 12% to 93.65 lakh tonnes, with edible oil imports up 13% to 92.17 lakh tonnes. Conversely, non-edible oil shipments saw a decline during this period.
The government's recent policy adjustments, including raising tariff values for crude and refined palm oil effective June 1, aim to encourage imports of crude oils and support domestic refining operations. This policy has led to a sharp decrease in RBD Palmolein imports and an increase in the proportion of crude oil in total imports. Refined oil imports from Nepal continue to be significant due to preferential duty arrangements.