Import of Vegetable Oils down by 9% in February 2018

Import of vegetable oils during February 2018 is reported at 1,157,044 tons compared to 1,270,443 tons in February 2017, consisting 1,124,999 tons of edible oils and 32,045 tons of non-edible oils i.e. down by 9%, as per the import data of Vegetable Oils (edible & non-edible) for the month of February 2018 compiled by The Solvent Extractors' Association of India. The overall import of vegetable oils during November 2017 to February 2018 is reported at 4,785,778 tons compared to 4,684,451 tons i.e. up by 2%.

On 01 March 2018, Union Government increased import duty on Crude Palm Oil , RBD Palmolein and RBD Palm Oil. Import duty on CPO increased to 44% from 30% (effective duty 48.4%) and RBD Palmolein and Refined Palm Oil to 54% from 40% (effective duty 59.4%) without changes in import duty on sunflower oil, rapeseed oil and soybean oil.

This increase in duty is welcome step. Yet, the government has missed the opportunity to provide a 15% duty difference between crude and refined oils as requested by the Association to encourage domestic refining industry and promote Make in India. Further, likewise there is need to increase import duty on rapeseed/mustard/canola oil, soybean oil, sunflower oil to support the farmers.

Stock Position at Port & in Pipeline :- The stock of edible oils as on 01 March 2018 at various ports is estimated at 757,000 tons (CPO 280,000 tons, RBD Palmolein 120,000 tons, Degummed Soybean Oil 170,000 tons, Crude Sunflower Oil 180,000 tons and 7,000 tons of Rapeseed (Canola) Oil) and about 1,440,000 tons in pipelines. Total stock at ports and in pipelines is reported at 2,197,000 tons, more or less same stock in February 2018. India's monthly requirement is about 18.25 lakh tons and operate at 30 days stock against which currently holding stock over 21.97 lakh tons equal to 36 days requirements.

Import of Refined & Crude Oil Ratio:- During November 2017 - February 2018, Import of refined oil (RBD Palmolein) showing declining trend, decreased to 607,359 tons from 916,438 tons in same period of last year, however Import of crude oil increased and reported at 4,048,091 tons compared to 3,660,061 tons during the same period of last year.

Import of Palm & Soft Oil Ratio:- During November 2017-February 2018, overall Palm Oil import has increased to 3,034,514 tons from 2,873,438 tons, while Soft Oils import decreased to 1,620,936 tons from 1,703,061 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 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 to February 2018 is reported at 130,328 tons compared to 107,952 tons during the same period last year i.e. up by 21%. P.F.A.D., P.K.F.A.D., C.P.S. & RBD Palm Stearin are the major import of non-edible oils.

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