India’s vegetable oil imports jumped 30 per cent in November on falling global prices as stockists built their inventories anticipating price-rise.
Total veg oil imports in the country shot up to 555,342 tonnes in November this year as compared to 427,912 tonnes in the corresponding month last year. Of this, edible and non-edible oil comprised 519,032 tonnes and 36,310 tonnes, respectively.
Import of RBD palmolein was reported at 137,959 tonnes as compared to 30,014 tonnes in the same month last year. Surprisingly, the share of refined oil increased to 27 per cent from 25 per cent in October this year.
Total imports of crude also jumped to 381,073 tonnes compared to 317,306 tonnes.
Meanwhile, the landed cost difference between crude palm oil (CPO) and soybean oil jumped by 20.45 per cent since the government levied 20 per cent import duty on the latter mid-last month.
The difference in landed cost has perked up to over $440 a tonne from $350 a tonne before imposing import duty on November 18. The levy has made import of soybean oil even less attractive resulting into “nil” import in November 2008.
| PRICE IMPACT Import of vegetable oils in November (in tonnes) | ||
| Particulars | 2007 | 2008 |
| RBD palmolein | 30,014.00 | 1,37,959 |
| Crude palm oil | 3,14,611 | 3,63,578 |
| Crude olein | 995 | - |
| Sunflower oil | - | 8,000 |
| Coconut oil | - | 1,999 |
| Crude palm ker. oil | 1,700 | 7,496 |
| PFAD | 27,505 | 16,496 |
| CPS | 19,958 | 5,827 |
| CPKO | 19,421 | 9,988 |
| PKFAD | 500 | - |
| Others | 19,421 | 3,999 |
| Total | 4,27,912 | 5,55,342 |
During the last oil year (November 2007-October 2008) total imports of soybean oil were recorded at 759,000 tonnes which is likely to reduce during the current year.
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Amazingly, because of dramatic fall in global edible oil prices, the landed cost on Indian ports of CPO and soybean oil have declined by 30 and 33 per cent in the last three months at $490 a tonne and $711 a tonne respectively in the last three months. In last three months, CPO, RBD palmolein, soybean oil and sunflower oil prices have gone down between $200 and $370, due to bearish trend in the international market.
The arrivals of non-edible oil during the month under consideration were reported at 36,310 tonnes as compared to 80,592 tonnes in November 2007, a decline of 55 per cent.