Ahead of the festive seasons in India vegetable oil importers from India have increased the purchase of palm oil. Increased purchase can be attributed to the fall in global prices which has made the palm oil cost-effective to meet the expected increased demand during the festive period. The following information has been released by the Indian Vegetable Oil Producers’ Association (IVPA).
Reduction in Import Duty of Palm Oil
The recent reduction in the import duty on crude edible oils like Palm Oil that is now 10% from its earlier import duty charge of 20% has brought a big sigh of relief for consumers. Sudhakar Desai, president of the Indian Vegetable Oil Producers Association (IVPA), said that since India is gearing up for its festive seasons, the domestic consumption of palm oil during Durga Puja and other major festivals will increase significantly.
It’s worth to note that vegetable oil imports decreased by about 1 lakh tonnes in the last six months, which is now expected to be compensated in the next six months. In 2023-24 (till the end of October), India imported a total of 16 million tonnes of oil.
Palm Oil from Indonesia and Malaysia India buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.