India's Unexpected Canola Oil Import Surge Amid Rising Local Prices

India has started importing canola oil from the UAE for the first time in nearly five years due to a significant price hike in local edible oils. The surge in demand comes ahead of the delayed local rapeseed crop, encouraging imports as a cost-effective alternative.

In an unexpected move over concerns of rising local prices, India has initiated imports of canola oil from the United Arab Emirates for the first time in nearly five years. The noteworthy purchase comes as local edible oil prices soar to a 3-½-year high.

A total of 6,000 tons of canola oil is slated to arrive at Kandla port in Gujarat this August, as confirmed by Rajesh Patel, managing partner at GGN Research. Traditionally, India has relied on palm oil supplies from Indonesia and Malaysia, along with soyoil and sunflower oil imports.

The domestic price of rapeseed oil dramatically increased to 167,000 rupees per ton in July, marking a high not seen since February 2022. This rise has pushed some importers to seek cost-efficient solutions, leading to a spike in demand for soyoil as well.