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Import of Vegetable Oils up by 2.5% during oil year November 2017-April 2018

Capital Market 

Import of vegetable oils during April 2018 is reported at 1,386,466 tons compared to 1,339,489 tons in April 2017 and 1,146,051 tons in previous month (March '18) consisting 1,368,616 tons of edible oils and 17,850 tons of non-edible oils i.e. up by 3.5%, as compiled by The Solvent Extractors' Association of India. The overall import of vegetable oils during November 2017 to April 2018 is reported at 7,318,295 tons compared to 7,138,265 tons i.e. Up by 2.5%.

On 1st 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 20% duty difference between crude and refined oils as requested by the Association to encourage domestic refining industry and promote Make in India.

Stock Position at Port & in Pipeline :- The stock of edible oils as on 1st May, 2018 at various ports is estimated at 1,068,000 tons (CPO 480,000 tons, RBD Palmolein 205,000 tons, Degummed Soybean Oil 140,000 tons, Crude Sunflower Oil 220,000 tons and 23,000 tons of Rapeseed (Canola) Oil) and about 1,270,000 tons in pipelines. Total stock at ports and in pipelines is reported at 2,338,000 tons, increased by 226,000 tons from 2,112,000 tons in April 2018. India's total demand for edible oils during 2017-18 is estimated at 23 lakh tons. Monthly requirement is about 19.00 lakh tons and operate at 30 days stock against which currently holding stock over 23.38 lakh tons equal to 37 days requirements.

Import of Palm Products:- Palm oil constitute major share in import by India. Landed cost of RBD Palmolein and CPO more or less the same, encouraging larger import of RBD Palmolein (finished product) over CPO (raw material), serious hurting domestic refiners for capacity utilization.

Import of Palm & Soft Oil Ratio:- During Nov.'17-Apr.'18, overall Palm Oil import has increased to 4,574,098 tons from 4,306,135 tons, thanks to withdrawal of export duty by the Malaysia, while Soft Oils import decreased to 2,572,653 tons from 2,692,254 tons during the same period of last year.

Also a parcel of 3,000 tons of cottonseed oil from U. S. A. arrived during April'18.

Import of Non-edible Oils: Import of Non-edible oils during Nov.'17 to Apr,'18 is reported at 171,544 tons compared to 139,876 tons during the same period last year i.e. up by 23%. This is mainly due to higher import of P. F. A. D. and C. P. S. at Nil duty under actual user condition, seriously affecting domestic refiners and main cause of disparity in domestic refining of palm oil.

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

First Published: Wed, May 16 2018. 12:34 IST