India's Edible Oil Imports Plunge Amid Volatile Market

India's import of edible oils experienced a significant drop in September, falling 29% compared to the previous year. The decline is attributed to high stock levels and price volatility. Palm oil imports saw the largest reduction, while domestic demand adjusts amid changes in import duties and market conditions.

India recorded a notable decline in its edible oil imports in September, with import levels falling by 29% compared to the same month last year, according to data from the Solvent Extractors' Association of India (SEA). The reduction is largely due to decreased shipments of both crude and refined palm oils.

Non-edible oil imports also saw a substantial decrease, plummeting to 22,990 tonnes from 57,940 tonnes the previous year. SEA attributes this trend to an earlier increase in inward shipments during July and August, coupled with a drop in demand, which has resulted in a build-up of stock at ports.

The volatility and firmness in global prices have caused importers to exercise caution. The market dynamics have led Indian buyers to cut back on palm oil purchases, which currently trades at higher prices than soybean and sunflower oils. The government has also raised import duties to protect domestic farmers amid the ongoing kharif crop harvest.

(With inputs from agencies.)