Vegetable oils import up 24% in Dec on low global rates

India's vegetable oil imports rose 24 per cent last month to 14.18 lakh tonnes on sharp jump in shipments of RBD palmolein, owing to low global prices.

Imports of vegetable oils (comprising edible and non- edible oils) stood at 11.39 lakh tonnes in December 2014, the Solvent Extractors' Association (SEA) of India said in a statement.

Edible oils import rose to 14.07 lakh tonnes in December last year from 11.23 lakh tonnes in December 2014. However, imports of non-edible oils fell to 11,467 tonnes from 17,996 tonnes in the year-ago period.

"It is a well known fact that globally the prices of edible oil are historically low since 2008, and has affected the domestic players," SEA said in a statement.

Overall import of vegetable oils during first two months of the current oil year 2015-16 (November to October) went up 18 per cent to 27,56,047 tonnes as compared to 23,29,520 tonnes in the corresponding period of the previous year.

During November-December 2015, import of refined oil (RBD palmolein) jumped to 4,61,192 tonnes from 1,03,136 tonnes in the same period of previous oil year.

The country's vegetable oil imports touched a record 14.61 million tonnes in 2014-15 oil year ended October.

SEA said that the current stock of edible oils as on January 1, 2016 is the record highest.

Stock at various ports is estimated at 11.10 lakh tonnes and about 14 lakh tonnes in pipelines, taking the total to 25.10 lakh tonnes, which is higher than 24.3 lakh tonnes in December 2015 and 20.7 lakh tonnes in January 2015.

India's monthly requirement is about 16 lakh tonnes and currently, the holding stock of over 25.10 lakh tonnes is equal to 47 days requirements, SEA said.

"In last one year, CIF Indian port prices of edible oils moved downward in line with fall in international prices. RBD palmolein price is down by $112 per tonne (-16%), crude palm oil by $119 (-18%), crude soyabean oil by $86 (-10%) and sunflower oil by $7 (-1%). In last one year rupee has depreciated by 6 per cent," SEA said.

In order to curb imports and protect domestic oilseeds farmers and processing mills, the government had in September last year raised import duty on crude edible oils to 12.5 per cent from 7.5 per cent, while the duty on refined edible oils was increased to 20 per cent from 15 per cent.

India imports palm oil mainly from Indonesia and Malaysia and a small quantity of crude soft oils, including soyabean oil from Latin America. Sunflower oil is imported from Ukraine and Russia.