India's vegetable oil imports hit an all-time high in 2008-09.

India's total vegetable oil imports rose by 37 per cent in 2008/09 to a record 8.66 million tonnes from November to October, the Oil Refining Association of India said on November 16. Edible oil imports rose 46% year-on-year to 8.18 million tons.

Increased imports of edible oil in 2008/09 also raised domestic oilseed meal stocks. Indian rapeseed stocks for the current year are likely to be 2 million tons, while soybean stocks are likely to be between 500,000 and 600,000 tons.

India imported 5.2 million tons of crude palm oil in 2008/09, compared with 4 million tons in the previous year. Imports of 24-degree refined palm oil amounted to 1.2 million tonnes, compared with 730,794 tonnes the previous year. Soybean oil imports were 989,613 tonnes, up from 759,433 tonnes the previous year. Sunflower oil imports amounted to 590,175 tons, compared with 26,490 tons the previous year.

After a five-year moratorium, India began importing rapeseed oil in 2008/09, amounting to 46,000 tonnes.

However, non-edible oil imports decreased by 29 per cent year-on-year to 459,599 tonnes due to increased crude palm oil imports. Non-edible oils are mainly used in the production of soaps and detergents.

India's vegetable oil imports fell by 19% year-on-year to 667,276 tonnes in October. Edible oil imports totaled 615,066 tonnes in October, down from 786,652 tonnes a year earlier as soybean oil imports fell sharply. Domestic soybean processing season began, slowing down soybean oil imports.

October soybean oil imports fell 55% year-on-year to 56,218 tonnes.

The Indian Refining Association said that per capita consumption increased, and the import tariff on crude edible oil was zero, plus the import tariff on refined edible oil was only 7.5%, which greatly increased the import scale.

Even during the peak season for domestic oilseed processing, vegetable oil imports unexpectedly did not decline, averaging about 2 million tons per quarter.

Last year, the government eliminated import duties on crude cooking oil and lowered import duties on refined cooking oil from 27.5% to 7.5% to improve domestic supply and curb price increases.

India's per capita consumption of edible oil rose to 12.8 kg in 2008/09 compared with 11.4 kg the previous year due to lower prices, traders said.

Analysts expect that edible oil imports are unlikely to decline in 2009/10, but will remain at last year's levels as consumption increases and prices fall.