From November to March 2023, imports of edible oils, including palm, soybean, and sunflower oil, decreased by 17% year over year to 5.76 million metric tons (MT). This reduction was attributed to higher pricing for palm oil.

Because of the cyclical structure of the crops, November through October is considered an oil year. The reason for the yearly decline in imports is the high base from the previous year and the beginning of a spike in oil prices globally. 

1.14 MT of refined and crude edible oil were imported into the nation last month, a 1% rise over the previous year.

Crude palm oil landing prices (at the Mumbai port), which make up a significant portion of the nation's imports, increased by 1% to $1045 per tonne on April 5 from $1,035 per tonne the previous year. Crude soybean and sunflower oil import prices at Mumbai are now $1025/tonne and $975/tonne, respectively, down 2% and 6%, respectively.

With import levies on crude oil falling to only 5.5%, India's imports of edible oils—palm, soybean, and sunflower—rose 17% year over year to a record 16.47 MT in the 2022–2023 oil year.

About 58% of India's 24 to 25 MT of yearly edible oil usage is imported. Among the oils that make up the domestic output share are groundnuts (7%), soyabean (24%) and mustard (40%).

The sector said that the government's decision to prolong the reduced import tariff structure for palm, soybean, and sunflower oils by a year, until March 31, 2025, will have a negative effect on the pricing and processing of indigenous oilseeds.

The current tax incidence on imports of crude palm, soybean, and sunflower oil is 5.5%, with just a 5% agri-infra cess and a 10% education cess applied. The domestic prices of edible oil kinds, such soybean and mustard, have been affected by record imports.

Prices for refined oil and mustard oil fell precipitously in February 2024, by 21% and 18%, respectively, while the total inflation rate for the oils and fats category fell by 13.97%.