MUMBAI (Commoditiescontrol) - India's vegetable oils (edible-non edible) imports during May dropped 25 percent at 10.25 lakh tonnes compared to 13.72 lakh tonnes same period a year ago, industry body said in a release today.
The drop in imports were attributed to highest stock at port and pipeline and reduced demand due to summer. The import consisted of 1,004,685 tons of edible oils and 20,193 tons of non-edible oils, according to The Solvent Extractor's Association of India.
The overall import of vegetable oils during first seven months of the current oil year 2015-16 (Nov-May) reported 10 percent higher at 85.93 lakh tonnes compared to 78.34 lakh tonnes.
Sharp increased in RBD Palmolein Import (107%):-
The import of RBD Palmolein during the first seven months of the current oil year i.e. from November 2015 to May 2016 jumped to 15.87 lakh tons from 7.66 lakh tons (107%) replacing import of CPO and expected to increase further in the coming months.
"The alarming increase in import of RBD Palmolein, seriously hurting the domestic refining industry," said B.V Mehta, Director, SEA.
This situation has arisen due to the fact that currently the landed cost of RBD olein (finished product) is lesser than Crude Palm Oil (CPO - raw material), said Mehta.
Mehta said domestic refining industry is facing severe crisis of under utilization of capacity and is on the verge of closure.
"Presently tax on export of CPO from Indonesia/Malaysia is higher by 5% in comparison to Refined Palm Oil/Olein. This differential will keep increasing with increase in prices of Palm Oil in the origin countries. Therefore duty differential in India has to be made variable to be in line with the differential duty prevailing in Malaysia/Indonesia and justify to increase in duty difference between crude and refined vegetable oils from 7.5% to 15%," Mehta noted.
Stock Position at Port and in Pipelines :-
Current stock of edible oils as on June 1, 2016 at various ports is estimated at 865,000 tons (CPO 270,000 tons, RBD Palmolein 250,000 tons, Degummed Soybean Oil 210,000 tons, Crude Sunflower Oil 110,000 tons and 25,000 tons of Rapeseed (Canola) Oil) and about 1,465,000 tons in pipelines.
Total stock at ports and in pipelines decreased to 2,330,000 tons from 2,440,000 tons in May 2016. India’s monthly requirement is about 16.5 lakh tons and operate at 30 days stock against which currently holding stock over 23.30 lakh tons equal to 42 days requirements. The overall stock as on 1st June, 2016 has decreased by 110,000 tons compared to 1st May, 2015.
(By Commoditiescontrol Bureau; +91-22-40015533)
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