India's vegetable oil demand set to grow despite import duty hike

By Rajendra Jadhav MUMBAI (Reuters) - Edible oil consumption in India is expected to grow at a pace of 2%-3% as cooking oils remain affordable despite higher import duties, a major importer told Reuters on Wednesday. New Delhi raised the basic import duty on crude and refined edible oils by 20 percentage points on Friday to help cushion farmers suffering from lower oilseed prices. “As we enter the peak festival season, demand will remain strong. Despite the duty hike, edible oil prices are affordable,” said Sanjeev Asthana, chief executive officer of Patanjali Foods Ltd. “Demand for edible oils may grow by 2%-3% in the 2024-25 marketing year, starting November 1, due to population growth and development,” he said. India is the world’s largest importer and meets 70% of its vegetable oil demand through overseas purchases. The country buys palm oil from Indonesia, Malaysia and Thailand, and imports soybean oil and sunflower oil from Argentina, Brazil, Russia and Ukraine. The ...