Import of vegetable oils between November 2015 and June 2016 up by 10%

09.08.2016

The Solvent Extractors Association of India has compiled the import data of edible and non-edible vegetable oils for the first eight months of the current oil year (November 2015 to June 2016). It was reported to be 9,763,043 tons. There has been a 10 per cent increase in the import of vegetable oils vis-a-vis the previous year, when it was reported to be 8.849,821 tons.

In June 2016, the import of vegetable oils was reported to be 1,169,465 tons. Of this, edible oils accounted for 1,158,902 tons and non-edible oils accounted for the remainder. There was a 15 per cent increase in the import of vegetable oils vis-a-vis June 2015, when it was reported to be 1,016,297 tons.

Between November 2015 and June 2016, the import of RBD Palmolein nearly doubled from 9.13 lakh tons to 17.77 lakh tons, replacing the import of crude palm oil (CPO). It is expected to increase further in the coming months. The alarming increase in the import of RBD Palmolein is seriously hurting the domestic refining industry.

The situation has arisen due to the fact that currently the landed cost of RBD olein (the finished product) is the same as that of crude palm oil (the raw material). Due to this situation, the domestic refining industry is facing a severe crisis of under-utilisation of capacity and is on the verge of closure.

Presently, the tax on export of CPO from Indonesia and Malaysia is higher by five per cent vis-a-vis refined palm oil/olein. This differential will keep increasing with the increase in the prices of palm oil in the origins.

Therefore, the duty differential in India has to be made variable in line with the differential duty prevailing in Malaysia and Indonesia and the increase in duty difference between crude and refined vegetable oils from 7.5 per cent to 15 per cent has to be justified.

The current stock of edible oils as on July 1, 2016 at various ports was estimated to be 8,78,000 tons. Of this, the share of CPO was estimated to be 2,80,000 tons, that of RBD Palmolein was estimated to be 1,80,000 tons, that of degummed soybean oil was estimated to be 3,00,000 tons, that of crude sunflower oil was estimated to be 1,05,000 tones and that of rapeseed (canola) oil was estimated to be 13,000 tons. The current stock of edible oils in pipelines as on July 1, 2016 was estimated to be 1,442,000 tons.

The total stocks at ports and in pipelines marginally decreased from 23,30,000 tons to 23,20,000 tons in June 2016. India’s monthly requirement is about 16.5 lakh tons and it operates at 30 days’ stock, against which the currently held stock (over 23.30 lakh tons) is equal to 42 days’ requirements. The overall stock as on July 1, 2016 has decreased by 10,000 tons vis-a-vis June 1, 2016.

Between November 2015 and June 2016, the import of palm oil decreased to 5,605,473 tons from 5.850,719 tons during the corresponding period last year, while the import of soft oils sharply increased to 4,064,343 tons from 2,871,555 tons during the corresponding period last year. The share of soft oil imports increased to 42 per cent from 33 per cent last year, while the share of palm oil products decreased to 58 per cent from 67 per cent.

The overall international prices are more or less the same prevailing last year, except that of crude sunflower oil.

The import of non-edible oils between November 2015 and June 2016 is reported to be 93,227 tons vis-a-vis 1,27,547 tons during the corresponding period last year. This indicates a 27 per cent decline. P F A D, P K F A D, C P K O and RBD Palm Stearin are the major non-edible oils imported.

 


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