India’s edible oil imports are set to fall for the third year in a row over an increase in local crop supplies and as a rally in oil prices to record high dented demand, an industry official said on Tuesday.
The world’s largest importer of edible oils is likely to make overseas purchases of 12.9 million tonnes in the 2021/22 auction year which ended in October. India, say.
“For the third year in a row the regular rainfall in India has increased domestic oil consumption by 1.5 million tons and helped reduce imports,” Mehta said at the Globoil conference in Dubai.
Consumption of edible oil in India for the past two years as the population grows, revenues rise, and restaurants have risen to cater to the masses who are starting to eat regularly.
The country’s edible oil imports have increased by 15 million tonnes from just 4 million in the last two years, but imports fell in 2019/20 and 2020/21 following pandemic-related closures -diabetes hit power.
In the current auction year, the government has lifted restrictions, but the release of higher tariffs is a slowdown, Mehta said.
India buys palm oil mainly from Indonesia and Malaysia, with most soyoil coming from Argentina and Brazil. He bought sunflower oil from Russia and Ukraine.
In the first six months of the 2021/22 sales year, India imported 6.54 million tons of edible oils, up 4.3 per cent from a year ago, Mehta said.