India has purchased canola oil for delivery in August, marking its first import of the commodity in almost five years.
The move comes as domestic edible oil prices have touched multi-year highs, making imports more attractive, according to industry officials.
A shipment carrying 6,000 tons of canola oil from the United Arab Emirates is expected to reach Kandla port in Gujarat this month, confirmed Rajesh Patel, managing partner at GGN Research, an edible oil trading firm.
India, one of the world’s largest consumers of edible oils, typically relies on palm oil imports from Indonesia and Malaysia. It also sources soyoil and sunflower oil from Argentina, Brazil, Russia, and Ukraine.
However, the sharp increase in rapeseed oil prices has encouraged buyers to explore alternatives like canola oil.
In July, rapeseed oil prices in the spot market soared to Rs 167,000 (USD 1,914.02) per ton, their highest level since February 2022. This marked an almost 34 per cent increase compared to the same period last year, creating strong pressure on buyers.
“The price rally is creating an opening for imports, and we might see more shipments arriving until the new local crop is available in March next year,” said a Mumbai-based dealer working with a global trade house.
Traders also noted a rising trend in soyoil imports, as some buyers have started substituting expensive rapeseed oil with relatively cheaper soyoil. This diversification of sourcing is expected to help balance demand until domestic supplies improve.
Industry experts believe that if international prices remain competitive, India may continue to import canola oil in the coming months.
This could also add some stability to the country’s edible oil market, which has been facing persistent volatility.
