Agro News

Import of Vegetable Oils down by 7% in May 2018

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The overall import of vegetable oils during November 2017 to May 2018 is reported at 8,604,535 tons compared to 8,522,704 tons i.e. Up by 1%.
The current duty structure coupled with rupee depreciation and credit crunch in the market has slow down the import, which is evident from the above data.

Import of vegetable oils during May 2018 is reported at 1,286,240 tons compared to 1,384,439 tons in May 2017 consisting 1,246,462 tons of edible oils and 39,778 tons of non-edible oils i.e. down by 7%, as per the import data of Vegetable Oils (edible & non-edible) for the month of May 2018, compiled by The Solvent Extractors' Association of India.

Secondly In May '18, first time, we have seen that import of soft oils (soya, sunflower & rape) is higher than palm oil with Soft oils share at 60% while palm oil just 40% only. Also soft oils import and sunflower oil import are highest in any single month since India started importing edible oils in 1994.
Record Stock at Port & in Pipeline :- The stock of edible oils as on 1st June, 2018 at various ports is estimated at 1,002,000 tons (CPO 320,000 tons, RBD Palmolein 170,000 tons, Degummed Soybean Oil 230,000 tons, Crude Sunflower Oil 270,000 tons and 12,000 tons of Rapeseed (Canola) Oil) and about 1,660,000 tons in pipelines. Total stock at ports and in pipelines is reported at 2,662,000 tons, increased by 324,000 tons from 2,338,000 tons in May 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 26.62 lakh tons equal to 42 days requirements. This is the ever highest stock putting pressure on domestic prices of edible oils.
Import of Palm Products:- Historically, 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-May'18, overall Palm Oil import has decreased to 5,070,576 tons from 5,105,481 tons, while Soft Oils import increased to 3,322,637 tons from 3,216,700 tons during the same period of last year
Average Prices and Rupee depreciation:- In last one year, in international market, prices of edible oils have gone down by 3 to 10% due to larger supply, and at the same time rupee depreciation by nearly 5% in one year, nullified the advantage of price reduction.
Import of Non-edible Oils: Import of Non-edible oils during Nov.'17 to May '18 is reported at 211,322 tons compared to 200,523 tons during the same period last year i.e. up by 5%. 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.

SOPA Vegetable oils' import fell by 23 per cent in June