Source: Oleoscope (Russia)
India’s edible oil consumption is expected to increase by 2-3% per annum as edible oils remain affordable despite higher import duties, reports Reures.
On Friday, New Delhi raised the basic import tax on crude and refined edible oils by 20% to protect farmers hit by low oilseed prices. However, demand will remain strong in view of the upcoming peak festive season. Despite the duty hike, edible oil prices remain affordable, says Sanjeev Asthana, CEO of Patanjali Foods Ltd.
“Demand for edible oils could increase by 2-3% in the 2024-2025 marketing year from November 1 as population and affluence increases,” he said.
India’s palm oil imports could rise to 9-10 million tons in 2024-2025 from around 9 million tons this year as the tropical oil is likely to regain market share it has lost to sunflower oil due to higher price, he said.
India’s sunflower oil imports are expected to rise to a record 3.6 million tons this year, up from 3 million tons last year.
The abundant supply of sunflower oil from Russia and Ukraine has led to a fall in prices and made it competitive with other oils.
Asthany expects imports of soybean oil to remain largely stable next year at around 3 million tons.
India’s soybean crop in 2024 could rise to 11 million tons from around 10 million tons last year if the weather remains favorable in the coming weeks, he said.