India's veg oil imports fall to 3-year low in February

Indian traders and refiners largely import crude palm oil for refining locally

In February, vegetable oil imports fell a staggering 40 per cent month-on-month to 969,175 tonnes, a three-year low, according to data by the Solvent Extractors’ Association.

The fall was primarily due to the fact that crude palm oil imports fell to 269,000 tonnes from to 670,000 tonnes in the corresponding month last year.

In February last year, vegetable oil imports stood at 578,975 tonnes. During the first four months of this oil year (November 2013 to October 2014), overall vegetable oil imports fell a marginal six per cent to 3.5 million tonnes (mt) from 3.74 mt in the year-ago period.

Traders and refiners largely import crude palm, refine it locally and blend it with other edible oils, before retailing it. They also import refined oil (refined, bleached and diodised palmolein) for direct packing and retailing in case the difference between the price of crude and palm oil is about $60 a tonne.

Before the inverted export duty imposed by Indonesia in October 2011, the price of refined, bleached and diodised palmolein was at least $60-80 a tonne higher than that of crude palm oil. Now, however, refined, bleached and diodised palmolein is $15-20 a tonne cheaper.

Imports account for about 55 per cent of India’s annual edible oil consumption of 18.5 mt.