Edible oil import bill rises 63% to Rs 1.17 lakh crore

Marketing year 2020-201 due to high global prices

MUMBAI: The country's edible oil import bill rose sharply by 9 per cent year-on-year to Rs 11,708 crore during the marketing year 2020-201 (November-October).

The rise in edible oil prices abroad has led to an increase in India's import bill, according to a report by the industry body Solvent Extractors' Association of India (C). India is the world's largest importer of edible oil. Malaysian futures are currently trading near record highs due to the massive purchase of palm oil.

In terms of volume, the import of vegetable oil (edible and non-edible oil) stood at 13 million tonnes. The import figure of vegetable oil in the marketing year 2016-20 was also at this level.

In the last marketing year, India's palm oil imports grew by 19.50 per cent to 3.50 lakh tonnes. The report notes that the increase was due to a reduction in import duties.

To reduce domestic edible oil prices, the Indian government has reduced the import duty on edible oil three times in the last six months.

India's soybean oil imports fell 19 per cent to 2.50 lakh tonnes last year, while sunflower oil imports fell 3 per cent to 1.6 million tonnes.

India imports palm oil mostly from Indonesia and Malaysia while soyoil is mainly procured from Argentina and Brazil.

The current marketing year, which began in November, could see a modest decline in the country's vegetable oil imports, given the growing supply of home-grown peanuts, soybeans and mustard, said Cena executive director B.S. V. Mehta said. Demand is also likely to be affected by higher prices.