India's edible oil demand to rise despite hefty import duty hike

Published Sep 18, 2024

Tridge summary

India's edible oil consumption is projected to grow at a rate of 2%-3% due to affordable prices, despite a 20% import duty hike, according to Sanjeev Asthana, CEO of Patanjali Foods. India, the world's largest importer, meets 70% of its vegetable oil demand through foreign sourcing and could see palm oil imports increase to 9-10 million metric tons in 2024-25. The country's sunflower oil imports, which have surged this year due to lower prices, are expected to return to normal in the next year. Soyoil imports are likely to remain steady, and India's soybean crop could see a rise to 11 million tons from 10 million tons if the weather permits.

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Original content

MUMBAI (Sept 18): India's edible oil consumption is set to grow at a pace of 2%-3% as cooking oils remain affordable despite an import duty hike, a leading importer told Reuters on Wednesday. New Delhi on Friday raised the basic import tax on crude and refined edible oils by 20 percentage points to help protect farmers reeling 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 at Patanjali Foods Ltd. "Edible oils' demand could grow by 2%-3% in the 2024-2025 marketing year starting from Nov 1 because of rising population and prosperity," he said. India is the world's largest importer and meets 70% of its vegetable oil demand through foreign sourcing. It buys palm oil from Indonesia, Malaysia and Thailand, while soyoil and sunoil come from Argentina, Brazil, Russia and Ukraine. The country's palm oil imports in 2024-25 could be between ...

Source: Theedgemarkets