Vegetable oil imports increased by 3% in 2018-19: SEA

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Pune | Updated: October 16, 2019 1:32:44 AM

During November 2018-September 2019, palm oil import has increased to 8,630,680 tonne from 7,947,472 tonne during the same period last year, due to higher import of RBD Palmolein.

overall import, non edible oil, import of vegetable oils, SEA of India, Palm Oil Malaysia, RBD Palmolein, RBD Palmolein, palm oil from Malaysia, oil imports india, oil export india, crude oils indiaThe stock of edible oils as on October 1, 2019, at various ports is about 1,062,000 tonne

The country’s overall import of vegetable oils during November 2018-September 2019 is reported an increase of 3% to 14,171,462 tonne, against 13,769,847 tonne during the same period the previous year.

According to the data compiled by the Solvent Extractors’ Association (SEA) of India for the month of September 2019, import of vegetable oils during September, 2019, was down 13% to 1,303,976 tonne, against 1,491,174 tonne in September 2018, consisting 1,254,443 tonne of edible oils and 49,533 tonne of non-edible oils.

In response to safeguard duty petition filed by the SEA of India, the government imposed 5% to safeguard duty on RBD Palmolein/Palm Oil of Malaysian origin with effect from September 4, 2019. In view of this, the duty difference between crude and refined palm oil has increased to 10% irrespective of any origins. Although, the import of RBD Palmolein remained more or less same in September 2019, the quantity of import from Malaysia reduced to 1/3rd from previous months import.

SEA executive director BV Mehta pointed out that according to reports, the Centre may take some action to curtail import of palm oil from Malaysia, following the hostile attitude of Malaysia at the UN in September. Malaysia had then charged that India invaded and occupied J&K. Fearing some action by the Centre in retaliation, many importer/refiners were shifting their buying from Malaysia to Indonesia for November/December shipment, he said.

The stock of edible oils as on October 1, 2019, at various ports is about 1,062,000 tonne (CPO 3,80,000 tonne, RBD Palmolein 2,55,000 tonne, degummed soyabean oil 2,75,000 tonne, crude sunflower oil 1,50,000 tonne to and rapeseed oil 2,000), however, pipeline stock reduced sizeable to 7,40,000 tonne as on October 1, 2019, compared to as on September 1 at 1,160,000 tonne resulted in lower import during the month.

The total stock at ports and in pipelines is reported at 1,802,000 tonne, which decreased by 240,000 tonne from 2,042,000 tonne as on September 1, 2019.

India’s monthly requirement is about 19 lakh tonne and operates at 30-day stock against which currently holding stock over 18.02 lakh tonne equal to 28-day requirements, against 25.53 lakh tonne as on September 1, 2018.

During November 2018-September 2019, import of refined oil (RBD Palmolein) rose to 2,612,394 tonne from 1,998,813 tonne in the same period of last year, up by 31%, thanks to lower duty on palmolein imported from Malaysia. This resulted in lower import of crude oils and reported at 10,969,087 tonne from 11,343,273 tonne during the same period last year, reducing capacity utilisation of domestic industry.

During November 2018-September 2019, palm oil import has increased to 8,630,680 tonne from 7,947,472 tonne during the same period last year, due to higher import of RBD Palmolein.

During the same period, the import of Soft Oils decreased to 4,950,801 tonne from 5,394,614 tonne. In last one year, in international market, prices of palm oils have gone down in the range of 1-3%. The spread between palm oil and soft oils has increased leading to higher import of palm products.

The import of non-edible oils during September, 2019 is reported at 49,533 tonnes compared to 69,171 tonnes in September, 2018. The overall import of non-edible oils during November 2018 to September 2019 is reported at 589,981 tonnes compared to 427,761 tonnes during the same period last year.

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