You are here: Home » News-CM » Economy » News
Business Standard

Import of Vegetable Oils rises by 25% in January 2018 and by 6% in 1st Quarter (November 2017 - January 2018)

Business Finance

Capital Market 

Import of vegetable oils during January 2018 is reported at 1,291,141 tons compared to 1,028,859 tons in January 2017, consisting 1,246,847 tons of edible oils and 44,294 tons of non-edible oils i.e. up by 25%, as per the import data of Vegetable Oils (edible & non-edible) for the month of January 2018 compiled by The Solvent Extractors' Association of India. The overall import of vegetable oils during November 2017 to January 2018 is reported at3,628,734 tons compared to 3,414,008 tons i.e. Up by 6%.

In the last Union Budget presented on 1st Feb.,2018, import duty on Crude Cottonseed Oil, Oilve Oil and Safflower Oil increased from 12.5% to 30% and refined oils to 35% in line with other crude oil and refined oils. Also, 10% Social Welfare Surcharge is now leviable on all imported goods including edible oils, resulted in to marginally increase in import duty, CPO and CDSBO 33%(30.9%), RBD Palmolein 44%(41.2%), CSFO & Canola Oil 27.5% (25.75%). With this, duty difference between crude and refined oil has increased from 10.1% to 11.0%, which will provide some more cushion to domestic refiners.

Secondly, currently, the CPO is imported at 30% import duty. In processing, refining of Crude Palm Oil; Palm Stearin and PFAD are generated to the extent of 25% to CPO (5.75% PFAD & 19.0% Palm Stearin). Import duty on actual user condition on these by-products is Nil and their import is increasing up by leaps and bounds seriously affecting the viability of Refineries engaged in processing of crude palm oil. The Association has pleaded to Union Government that Palm Stearin and PFAD should attract the same level of duty as CPO to provide a level playing field to the domestic refiners and same time consumer at large will also be benefited by a way of lower price of RBD Palmolein.

Stock Position at Port & in Pipeline :- The stock of edible oils as on 1st February 2018 at various ports is estimated at 955,000 tons (CPO 355,000 tons, RBD Palmolein 130,000 tons, Degummed Soybean Oil 200,000 tons, Crude Sunflower Oil 160,000 tons and 10,000 tons of Rapeseed (Canola) Oil) and about 1,340,000 tons in pipelines. Total stock at ports and in pipelines is reported at 2,195,000 tons, increased by 19,000 tons from 2,176,000 tons in January 2018. India's monthly requirement is about 18.25 lakh tons and operate at 30 days stock against which currently holding stock over 21.95 lakh tons equal to 36 days requirements.

Import of Refined & Crude Oil Ratio:- During Nov.'17 - Jan.'18, Import of refined oil (RBD Palmolein) has decreased to 404,950 tons from 683,125 tons in same period of last year, however Import of crude oil increased and reported at 3,125,501 tons compared to 2,659,119 tons during the same period of last year.

Import of Palm & Soft Oil Ratio:- During Nov.'17-Jan.'18, Palm Oil import has increased to 2,274,269 tons from 2,137,231 tons during the same period of last year, however Soft Oils import also increased to 1,256,182 tons from 1,205,013 tons during the same period of last year.

Average Prices and Rupee depreciation :- Since Oct '16 and onwards landed price of RBD Palmolein and CPO have remained more or less the same encouraging larger 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 Nov.'17 to Jan,'18 is reported at 98,283 tons compared to 71,764 tons during the same period last year i.e. up by 37%. P. F. A. D., P. K. F. A. D., C. P. S. & RBD Palm Stearin are the major import of non-edible oils.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, February 15 2018. 12:16 IST