Import of Vegetable Oils down by 10% in December 2017

Import of vegetable oils during December 2017 is reported at 1,088,783 tons compared to 1,209,685 tons in December 2016, consisting 1,058,289 tons of edible oils and 30,494 tons of non-edible oils i.e. down by 10%, as per the import data of Vegetable Oils (edible & non-edible) for the month of December 2017 compiled by The Solvent Extractors' Association of India. The overall import of vegetable oils during November to December 2017 is reported at 2,337,593 tons compared to 2,385,149 tons i.e. down by 2%.

Hike in Import Duty: Government of India on 17th Nov.,2017 raised the import duty on edible oils by 12.5% to 15% across the board to support the farmers to receive the remunerative prices for his produce. This announcement has changed the centiments and market has move upward and now prices of soybean and groundnut are above MSP which were ruling much below prior to 17th Nov.'2017.

 

Second objective for hike in import duty was to offset the export duty imposed by palm oil exporting countries viz. Malaysia & Indonesia. The hike in import duty by India lead to Malaysia to suspend the export taxes on crude palm oil for a three months period w.e.f. 8th January 2018 and with this export duty on CPO will be nil. The withdrawal of export duty by Malaysia on crude palm oil (app. US$ 36 per tonne) will reduce the landed cost of crude palm oil and thereby India would be benefitted.

Further, to check the rising import of RBD Palmolein in India and to encourage the Indian Vegetable Oil Industry, in line with Make in India commitment of our Honourable Prime Minister, duty difference between crude palm oil and refined palm oil need to be raised to 15% from current level of 10%, by raising import duty on RBD palmolein to 45% from present level of 40%.This will go a long way in improving capacity utilisation of our Refining Industry.

Stock Position at Port & in Pipeline :- The stock of edible oils as on 1st January, 2018 at various ports is estimated at 876,000 tons (CPO 345,000 tons, RBD Palmolein 130,000 tons, Degummed Soybean Oil 200,000 tons, Crude Sunflower Oil 185,000 tons and 16,000 tons of Rapeseed (Canola) Oil) and about 1,300,000 tons in pipelines. Total stock at ports and in pipelines is reported at 2,176,000 tons, decreased by 91,000 tons from 2,267,000 tons in December, 2017'. India's monthly requirement is about 18.0 lakh tons and operate at 30 days stock against which currently holding stock over 21.76 lakh tons equal to 36 days requirements.

Import of Refined & Crude Oil Ratio:- During November-December 2017, Import of refined oil (RBD Palmolein) has decreased to 254,286 tons from 486,502 tons in same period of last year, however Import of crude oil increased and reported at 2,029,318 tons compared to 1,843,657 tons during the same period of last year.

Import of Palm & Soft Oil Ratio:- During November-December 2017, Palm Oil import has decreased to 1,439,825 tons from 1,524,469 tons during the same period of last year, however Soft Oils import increased to 843,779 tons from 805,690 tons during the same period of last year.

Since October 2016 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 during Nov.- Dec, 2017 is reported at 53,989 tons compared to 54,990 tons during the same period last year. P.F.A.D., P.K.F.A.D., C.P.K.O. & RBD Palm Stearin are the major import of non-edible oils.

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