Edible oil consumption in India is expected to grow to 2% to 3% in the 2024-2025 marketing year, according to a major importer in the sector. Even with rising import duties, cooking oils remain affordable for consumers, Sanjeev Asthana, chief executive officer of Patanjali Foods Ltd, told Reuters in an interview.
The Delhi government on Friday decided to raise the basic import duty on crude and refined edible oils by 20 percentage points. The move is aimed at protecting local farmers, who are currently facing hardship due to low oilseed prices.
Demand growth during festival season
“As we enter the peak festival season, demand for edible oil will remain strong. Despite the increase in rates, prices are still affordable,” Asthana said. He expects demand for edible oils to grow by 2% to 3% next year, driven by population growth and economic development.
India is currently the world's largest importer of vegetable oils, meeting 70% of its demand through overseas purchases. The country imports palm oil mainly from Indonesia, Malaysia and Thailand, as well as soybean and sunflower oil from Argentina, Brazil, Russia and Ukraine.
India’s palm oil imports could reach 9-10 million tonnes in 2024-2025, up from around 9 million tonnes this year. Palm oil is expected to regain some of the market share lost to sunflower oil, which has been on the rise recently due to attractive prices.
Sunflower and soybean oil: Expectations for 2024-2025
“This year, we have seen an unusual increase in sunflower oil imports due to more competitive prices. However, we expect imports to return to the normal level of around 3 million tonnes next year,” Asthana said.
India's sunflower oil imports are expected to reach a record 3.6 million tonnes in 2023, up from 3 million tonnes imported the previous year.
On the other hand, regarding soybean oil, abundant supplies from Russia and Ukraine have helped keep prices competitive when compared to other vegetable oils. Asthana expects soybean oil imports to remain stable at around 3 million tonnes next year, in line with this year’s levels.
India's soybean crop outlook
Furthermore, India's 2024 soybean crop could reach 11 million tonnes, up from 10 million tonnes last year, if weather conditions remain favourable in the coming weeks, Asthana concluded.
Source: Rajendra Jadhav | Notícias Agrícolas
