Vegetable oil imports drop by 10.5% in February

By: |
March 14, 2020 2:00 AM

The country’s monthly requirement is about 19 lakh tonne and ordinarily operates at 30-day stock against which currently the holding stock is 15.30 lakh tonne, equal to the 24-day requirement.

During November 2019 to February 2020, the import of refined oil (RBD palmolein) decreased to 3,00,536 tonne from 6,47,900 tonne a year ago. During November 2019 to February 2020, the import of refined oil (RBD palmolein) decreased to 3,00,536 tonne from 6,47,900 tonne a year ago.

The import of vegetable oils in February 2020 has dropped 10.5% to 11,12,478 tonne compared to 12,42,533 tonne a year ago, consisting of 10,89,661 tonne of edible oils and 22,817 tonne of non-edible oils.

The overall import of vegetable oils during November 2019 to February 2020 stood at 45,63,791 tonne compared to 48,62,849 tonne, a drop of 6.1% from the year-ago period. Data compiled by the Solvent Extractors’ Association of India on the import of vegetable oils (edible and non-edible) for February 2020 reveals that after being placed on the restricted list from January 8, 2020, the import of RBD palmolein has drastically reduced in February 2020 to 33,677 tonne. The import of crude sunflower and crude soyabean oil, in contrast, has sharply increased as spread between palm oil and soft oil reduced to nearly $75-80 per tonne, encouraging larger import of soft oil.

The stock of edible oils as on March 1, 2020, at various ports has been estimated at 11,10,000 tonne (CPO 5,00,000 tonne, RBD palmolein 1,30,000 tonne, degummed soyabean oil 2,60,000 tonne and crude sunflower oil 2,20,000 tonne). As on February 1, 2020, the total stock at ports and in pipelines is reported at 15,30,000 tonne, a decrease of 2,05,000 tonne from 17,35,000 tonne a year ago. The country’s monthly requirement is about 19 lakh tonne and ordinarily operates at 30-day stock against which currently the holding stock is 15.30 lakh tonne, equal to the 24-day requirement.

During November 2019 to February 2020, the import of refined oil (RBD palmolein) decreased to 3,00,536 tonne from 6,47,900 tonne a year ago. However, the import of crude oil increased and was reported at 41,50,052 tonne compared to 39,63,912 tonne in the year-ago period.

During November 2019 to January 2020, the palm oil import has decreased to 25,45,127 tonne (57%) from 30,70,466 tonne (67%) during the same period of last year.

However, the soft oil import increased to 19,05,461 tonne (43%) from 15,41,346 tonne (33%) a year ago. This was mainly due to the reduction in spread between palm oil and soft oil, which makes the import of soft oil more viable. Indonesia is a major supplier of crude palm oil and refined palmolein at 21.08 lakh tonne.

Malaysia, Ukraine and Russia are major suppliers of sunflower oil, while Argentina is the major supplier of soyabean oil to India.

The import of non-edible oil during November 2019 to February 2020 is reported at 1,13,203 tonne compared to 2,51,037 tonne during the same period last year — down 55%, mainly due to the high prices in the international market restricting the build up of large inventory by importers in India coupled with a lower demand of end products resulting in an overall reduction in the import of non-edible oils.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Karnataka farmers urge Centre to exempt ‘Bengaluru Rose’ onions from export ban
2Cane crushing in Maharashtra to begin from October 15
3Govt again cuts import duty on masoor dal