Significant shift: Palm oil imports hit 13-yr low
The Times of India (18/02/2025) - Ahmedabad: India's edible oil market is witnessing a significant shift, with palm oil imports hitting a 13-year low while soybean oil gains popularity due to its cost advantage.
Data from the Solvent Extractors' Association of India (SEA) reveals that high international palm oil prices have drastically reduced imports. Jan's palm oil imports were the lowest in 13 years, at just 2.75 lakh tonnes compared to 7.80 lakh tonnes in Jan 2024.
On the contrary, soybean oil imports have surged due to lower prices. The Nov 2024 to Jan 2025 quarter saw soybean oil imports jump to 12.7 lakh tonnes, up from 4.91 lakh tonnes in the same period the previous year.
This shift is attributed to tighter palm oil supplies from key exporters like Indonesia and Malaysia, prompting consumers to switch to more affordable alternatives like soybean oil from South America.
The price of a 15kg tin of palm oil at present is around Rs 2,300, while soybean oil ranged from Rs 2,050 to Rs 2,300. "Soybean oil is currently the more affordable option," said Pratap Chandan, chairman of the Federation of Gujarat Edible Oil Traders.
He added, "We are seeing increased demand for soyabean oil from bulk consumers and a decrease in palm oil demand due to high prices."
While palm oil prices cooled by $80-$100 in the last month, soybean oil remains attractive.
Priyam Patel, MD of a leading edible oil manufacturer, explained that the decline in palm oil imports is due to both price dynamics and changing preferences. "Unless palm oil regains its price advantage, we may continue to see this shift in India's edible oil import mix," said Patel.