Import of Vegetable Oils Up by 7% in November 2017

Import of vegetable oils during November 2017 is reported at 1,248,810 tons compared to 1,167,397 tons in October 2017 and 1,175,464 tons in November 2016, i.e. up by 7% from October 2017, as per the import data of Vegetable Oils (edible & non-edible) compiled by The Solvent Extractors' Association of India for the month of November 2017.

Hike in Import Duty : Government of India on 17th November 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 sentiments and market has move upward and now prices of soybean and groundnut touched MSP which were ruling much below prior to 17th November 2017. While hike in duty, inadvertently cottonseed oil duties were not raised and remained unchanged at 12.5% on crude and 20% on refined cottonseed oil, which has created an anomalous situation and harming the interest of cottonseed farmers. The Association has since represented Government of India to raise duty on cottonseed crude and refined oils in line of other crude and refined oils.

 

Stock Position at Port & in Pipeline : The stock of edible oils as on 1st December 2017 at various ports is estimated at 847,000 tons (CPO 345,000 tons, RBD Palmolein 115,000 tons, Degummed Soybean Oil 200,000 tons, Crude Sunflower Oil 180,000 tons and 7,000 tons of Rapeseed (Canola) Oil) and about 1,420,000 tons in pipelines. Total stock at ports and in pipelines is reported at 2,267,000 tons, decreased by 77,000 tons from 2,344,000 tons in November 2017. India's monthly requirement is about 18.0 lakh tons and operate at 30 days stock against which currently holding stock over 22.67 lakh tons equal to 38 days requirements.

Import of Refined & Crude Oil Ratio: During November 2017, Import of refined oil (RBD Palmolein) has decreased to 147,362 tons from 240,948 tons in November 2016, however Import of crude oil increased and reported at 1,077,953 tons compared to 914,915 tons in November 2016.

Import of Palm & Soft Oil Ratio: During November 2017, Palm Oil import has decreased to 716,968 tons from 801,311 tons in November 2016, however Soft Oils import also increased to 508,347 tons from 354,552 tons last year.

Since October 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 during November 2017 is reported at 23,495 tons only compared to 19,601 tons during the same period last year. P.F.A.D., P.K.F.A.D.,C.P.K.O. & RBD Palm Sterin are the major import of non-edible oils.

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