Edible Oil: The repercussions of the decision to raise the import duty on edible oils in September of the previous year continue to be felt. As of February 2025, imports of edible oils have plummeted to a four-year low, indicating potential further price hikes. This year, the cost of cooking oil has surged by 3 to 11 rupees. Experts attribute the diminished supply of oil to the increased import duty.
Media reports indicate a significant decline in the imports of soya oil and sunflower oil, resulting in an overall decrease of 12% in edible oil imports, which totaled 8.84 lakh tonnes in February—the lowest figure since February 2021. While palm oil imports reached a 14-year low in January, they rebounded by 36% to 3.74 lakh tonnes in February.
Conversely, imports of soybean oil and sunflower oil have sharply decreased, hitting eight-month and five-month lows, respectively. Analysts suggest that the government may consider further raising the import duty to support local farmers. This move could bolster domestic production; however, the combination of reduced imports and dwindling stocks may lead to additional increases in edible oil prices in the near future.
The statistics reveal the following changes in oil imports:
– Soya oil: down 36% to 2.84 lakh tonnes
– Sunflower oil: down 22% to 2.26 lakh tonnes
– Edible oil stocks have decreased by 26% to 1.6 million tonnes, marking the lowest level in four years due to the decline in imports.
Data from the Ministry of Consumer Affairs shows the following price increases for edible oils this year:
– Vegetable oil: increased from Rs 170 to Rs 176 (a rise of Rs 6)
– Soya oil: increased from Rs 158 to Rs 163 (an increase of Rs 5)
– Sunflower oil: increased from Rs 170 to Rs 181 (an increase of Rs 11)
– Palm oil: increased from Rs 143 to Rs 146 (an increase of Rs 3).