India's Vegetable Oil Imports Dip Amid Duty Changes

India's vegetable oil imports have witnessed a significant decline, dropping for the sixth consecutive month by 22.36 per cent in May compared to a year earlier, according to the Solvent Extractors Association (SEA). This downturn comes amid a government reduction in import duties, which the SEA claims will not impact overall import volumes.

During the initial seven months of the 2024-25 oil year, a downward trend in total vegetable oil imports was observed, with volumes decreasing from 86.78 lakh tonnes to 78.84 lakh tonnes compared to the same timeframe last year. This shift comes alongside a reduction in the basic import duty on palm, soybean, and sunflower oils, which was lowered from 20 per cent to 10 per cent.

Contrary to causing a rise in oil imports, the reduced duty benefits consumers by potentially lowering domestic prices. It also aims to diminish refined palmolien importations and redirect demand towards crude palm oil, thereby invigorating domestic refining efforts. The SEA has urged its members to pass on these duty cut benefits to consumers, emphasizing the importance of transparency in pricing.

(With inputs from agencies.)