The import of edible oil in Pune has taken a hit recently, with a significant drop in palm oil, soybean oil, and sunflower oil imports. The central government’s decision to increase import duties has led to a decrease in palm oil imports by 34%, soybean oil by 15%, and sunflower oil by a whopping 49%.
In September, palm oil imports fell by 34% compared to August, marking the lowest imports in the last six months. Similarly, soybean oil imports dropped by 15%, while sunflower oil imports plummeted by 49% to the lowest levels seen in the past ten months.
The rise in import duties in India, combined with increased export duties from key suppliers like Indonesia and Malaysia, has made palm oil prices nearly equal to soybean and sunflower oils. Consequently, many edible oil companies have either significantly reduced or completely stopped importing both refined and crude palm oil.
Sandeep Bajoria, executive head of Sunvin Group, pointed out that the decrease in soybean and sunflower oil imports can be attributed to the existing stock of approximately 30 lakh tonnes of oil imported at lower rates before the duty hike. Importers are now canceling or postponing palm oil imports due to the higher tariffs, with similar trends observed for soybean and sunflower oils.
While palm oil imports are expected to pick up once prices decrease, imports of sunflower and soybean oils are gradually increasing. Importers are being cautious about stockpiling and only importing what is necessary.
Although there has been a slight increase in imports ahead of Diwali in October, there is no imminent threat of a shortage as the country currently has around 30 lakh tonnes of edible oil in stock. India primarily imports palm oil from Indonesia, Malaysia, and Thailand, while sourcing soybean and sunflower oil from countries like Argentina, Brazil, Russia, and Ukraine.
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