Import of Vegetable Oils Up by 5% during November 2016 to October 2017

RBD Palmolein, CPO, Sunflower Oil Import Increased While Rape oil, Soybean Oil Import decreased

Import of vegetable oils during Oil Year 2016-17 (November 2016 to October 2017) i.e. edible oil and non-edible oil reported at 154.4 lakh tons (15.44 MnT) compared to 147.4 lakh tons (14.74 MnT) for the same period of last year i.e. up by 4.75%, as per the data from The Solvent Extractors' Association of India.

Import of Vegetable Oils during October 2017: Import of Vegetable Oils during October 2017 is reported at 1,167,397 tons compared to 1,173,254 tons for Oct.'16 and 15.19 lakh tons in Sept, 2017. The overall growth is 5% against last year.

Stock Position at Port & in Pipeline :- The stock of edible oils as on 1st Nov., 2017 at various ports is estimated at 884,000 tons (CPO 330,000 tons, RBD Palmolein 150,000 tons, Degummed Soybean Oil 275,000 tons, Crude Sunflower Oil 115,000 tons and 14,000 tons of Rapeseed (Canola) Oil) and about 1,460,000 tons in pipelines. Total stock at ports and in pipelines decreased by 255,000 tons from 2,589,000 tons in October, 2017 due to lower import in October 2017. India's monthly requirement is about 18.0 lakh tons and operate at 30 days stock against which currently holding stock over 23.44 lakh tons equal to 39 days requirements.

Quarterly Review: During the oil year 2016-17 (Nov.- Oct.) import has decreased in first quarter of the year due to good kharif oilseeds crop and better domestic availability of edible oil, however increased in second and third and fourth quarter, due to disparity in crushing, resulted to lower production of domestic vegetable oil.

Import of Edible Oil - Sharp Increased in Five Years

Import of edible oil has sharply increased in last few years due to stagnant oilseed production and rising demand in the country. India's dependence on imported oil has increased to 70% of its requirements.

a) RBD Palmolein import jumped from 16.6 lakh tons in 2014-15 to 28.7 lakh tons in 2016-17,up by 73%, due to unfavourable duty difference between crude and refined oils.

b) CPO import drastically reduced from 77.2 lakh tons in 2014-15 to 63.3 lakh tons in 2016-17, due to higher import of RBD Palmolein at the cost of CPO.

c) Soybean oil import is increasing from year to year. In 2012-13, import was just 10.9 lakh tons which increased to 33.1 lakh tons in 2016-17, due to attractive price in international market.

d) Sunflower oil price has remained attractive compared to soybean oil, hence import increased from 15.16 lakh tons in 2015-16 to 21.69 lakh tons in 2016-17.

Import of Refined & Crude Oil Ratio in 2016-17 : Import of refined oil sharply jumped to 28.71 lakh tons compared to 26.23 lakh tons during the same period of last year, Also crude oil import has increased to 122.06 lakh tons compared to 119.48 lakh tons during corresponding period of previous year.

Import of Palm & Soft Oil Ratio: During Oil Year 2016-17 (Nov-Oct) Palm Oil import marginally increased to 92.94 lakh tons compared to 84.43 lakh tons during the last year and the same time soft oil import reported at 57.83 lakh tons, consisting of 33.16 lakh tons of soybean oil, 21.69 lakh tons of sunflower oil, 2.92 lakh tons of rape oil compared to 61.28 lakh tons in last year.

Since Oct '16 and onwards landed price of RBD Palmolein and CPO have remained more or less the same encouraging larger import of RBD Palmolein at the cost of CPO. The spread between palm oil and soft oil also reduced encouraging larger import of soft oils.

Import of Non-edible Oils: Import of Non-edible oils doubled during the year and reported at 362,822 tons compared to 167,464 tons in previous year (2015-16).

Import of P.F.A.D. and RBD Palm Stearin are allowed at Nil duty, while locally produce from imported CPO have a burden of 15% duty, encouraging its import over domestically produced P.F.A.D. and RBD Palm Stearin.

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