Soyoil and sunflower oil imports fall sharply, while palm oil shipments see a slight recovery, leading to a drop in stocks and potential for increased imports in coming months
India's edible oil imports in February saw a dramatic drop, reaching their lowest level in four years, as imports of soyoil and sunflower oil plummeted. However, palm oil shipments showed signs of recovery after reaching their lowest point in nearly 14 years in January, Reuters reported.
According to estimates from five dealers shared with Reuters, India's total edible oil imports fell by 12 per cent in February, totaling just 884,000 metric tonne. This marks the lowest import volume since February 2021. Soyoil imports fell by 36 per cent, hitting 284,000 metric tons—the lowest level in eight months—while sunflower oil imports declined by 22 per cent to 226,000 metric tonne, the lowest in five months. The fall in imports of soyoil and sunflower oil can be attributed to high international prices and the increased availability of locally produced edible oils, which prompted refiners to scale back purchases.
Meanwhile, palm oil imports showed a slight recovery, rising by 36 per cent from the previous month to 374,000 metric tonne. This was a significant rebound after January's palm oil imports fell to their lowest levels since March 2011. India traditionally imports palm oil primarily from Indonesia, Malaysia, and Thailand.Despite the rebound in palm oil shipments, India's overall edible oil stocks have decreased sharply. The country's oil reserves have fallen by 26 per cent since February, reaching just 1.6 million tonne by 1 March—the lowest stock levels seen in more than four years.With stocks depleting and imports falling for two consecutive months, experts predict that India's edible oil purchases could begin to rise again starting in March, potentially supporting the prices of Malaysian palm oil and US soyoil futures.India sources its palm oil mainly from Indonesia, Malaysia, and Thailand, while soyoil and sunflower oil are imported from Argentina, Brazil, Russia, and Ukraine.
