India's Edible Oil Imports Plummet in April 2025: A Deep Dive
Decrease in Oil Imports Volume by 36% Occurs in April
India's edible oil imports have witnessed a staggering 36% drop in April 2025, according to the Solvent Extractors Association (SEA). The dogged descent of import volumes for cooking oil last month was the lowest since May 2020.
The reasons behind this nosedive are multifaceted, with the main suspects being burgeoning global prices and a sturdy domestic oilseed crop. The sharply decreased imports of palm oil bore the brunt of this decline, experiencing a 53% plunge.
The beleaguered palm oil industry, which accounts for an impressive 60% of total imports, is now trying to navigate through these challenging times. Sandip Das, a renowned expert, prognosticated that overall cooking oil imports during the 2024-25 oil year could plummet to 15.5 MT from the previous year's 16 MT.
Digging deeper into the numbers, refined edible oil imports from Nepal were estimated to be 60,000 to 70,000 tonnes monthly. The influx of Nepalese imports impacted overall imports and stock positions, as per SEA's assertion.
In the first six months of the oil year, cooking oil imports had declined by 8% to 6.5 MT. The palm oil market, meanwhile, encountered a 53% dip, with the consumption of crude palm oil slipping by 55%.
This dramatic drop in palm oil imports can be attributed to a few factors. Firstly, the persistently high prices in global markets have dented demand. Secondly, increased processing of mustard seeds in India has filled the gap left by reduced imports.
India remains the world's largest edible oil consumer and importer, having stockpiled 1.35 MT worth of cooking oil as of May 1, 2025. This decrease in imports in 2023-24 could be attributed to both an increase in domestic oilseed production and a decline in demand due to elevated prices.
While the economy recovers and the demand for edible oils continues to grow, SEA is urging the government to strategic interventions to effectively manage and choreograph the inflow of refined oil from Nepal.
Sources:1. Edible Oil Imports Decrease in April 20252. FE Online3. India's Vegetable Oil Imports: What's Behind the Decline?
Interesting Insights:
- Market Dynamics: Beyond palm oil, other vegetable oil imports, such as soybean and sunflower oil, have experienced similar declines, reflecting a broader trend in the vegetable oil market[3][5].
- Global Competition: The downturn in Indian imports could have a ripple effect on the global edible oil market, particularly in Malaysia and the U.S.[1]
- Note on Imports: Given the current demands and low stocks, India could potentially increase its imports in the coming months to maintain a stable market and meet rising demands[1].
- The decrease in India's edible oil imports could impact the Defi (decentralized finance) market, as investment opportunities in the agricultural and finance sectors may become more appealing due to the reduced import costs.
- The plunge in palm oil imports might have an indirect influence on the sports industry, as some of the revenue used for importing palm oil could instead be allocated to sponsoring or investing in sports teams, given the economic savings.
- With the decline in inflation caused by the drop in edible oil imports, the Indian economy could see a boost, leading to increased investment in various sectors such as stocks and real estate, as more disposable income becomes available to consumers.
