December 4, 2014

India will import a record 12.3 million tons of vegetable oil this year – up 6.2% year on year, because of ever increasing demand, falling prices, and low domestic output as a result of a delayed monsoon and sparse rain. India is estimated to produce 19.66 million tons of oilseeds this year; far below the 22.41 million tons the year before, which will cause a decline in refining of domestic oilseeds, however the large imports of crude palm oil needing refining should help support the industry. In 2013/14. India’s per capita consumption of vegetable oil was 14.4 kg per person, translating into total demand of 18.28 million tons.  This demand is expected to increase to 19.30 million tons for 2014/15 – an annual growth rate of 5.6%, necessitating heavier reliance on foreign imports, predominantly from Indonesia and Malaysia. The competition between the two countries to gain market share in India has pushed the price of oilseeds down so far that planting oilseed crops in India has become economically unsound. This distress has pushed Indian producers to call for an import duty of 10% on all crude edible oils, and a 25% import duty on all refined edible oils.

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