- Record oil imports to India in the 2022/23 season.
- Main reasons are growing consumption and attractive discounts.
- The volatile trends in the vegetable oil market reflect the dynamic development of the sector.
Record growth in oil imports to India
Imports of palm oil and sunflower oil to India have risen by 24% and 54% respectively, reaching record levels in 2022/23, the trade organization reports. The reasons for this phenomenon are rising consumption and attractive price discounts compared to soybean oil.
In 2022/23, India’s palm oil imports reached 9.79 million tons, sunflower oil 3 million tons, and soybean oil imports fell by 12% to 3.68 million tons. Total edible oil imports reached a record 16.47 million tons and increased by 17.4%, mainly due to a reduction in import tax.
Effects on global trade
The increase in Indian palm oil and sunflower oil imports to a record level in 2022/23 has a significant impact on global trade in vegetable oils. The Indian market is the world’s largest importer of vegetable oils, so India’s decisions will have an impact on global distribution and pricing of these products.
Record imports to India could help reduce palm oil stocks in Indonesia and Malaysia. They could also support futures and lead to a reduction in sunflower oil stocks in the Black Sea countries.
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