India June Veg Oil Imports Up 15% M/M - SEA

MUMBAI (Commoditiescontrol)- India's import of vegetable oils during June, 2016 is reported at 1,169,456 tons compared to 1,016,297 tons in June, 2015, consisting of 1,158,902 tons of edible oils and 10,554 tons of non-edible oils i.e. up by 15 percent, according to The Solvent Extractors’ Association of India (SEA).

The overall import of vegetable oils during first eight months of the current oil year 2015-16, Nov.’15 – June’16 is reported at 9,763,043 tons compared to 8,849,821 tons i.e. up by 10 percent.



Sharp increased in RBD Palmolein Import:-
The import of RBD Palmolein during the first eight months of the current oil year i.e. from November 2015 to June 2016 doubled and reached at 17.77 lakh tons from 9.13 lakh tons 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.

This situation has arisen due to the fact that currently the landed cost of RBD olein (finished product) is same as that of Crude Palm Oil (raw material). Due to this situation, the 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 origins. 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 percent to 15 percent.



Stock Position at Port and in Pipelines :-
Current stock of edible oils as on 1st July, 2016 at various ports is estimated at 878,000 tons (CPO 280,000 tons, RBD Palmolein 180,000 tons, Degummed Soybean Oil 300,000 tons, Crude Sunflower Oil 105,000 tons and 13,000 tons of Rapeseed (Canola) Oil) and about 1,442,000 tons in pipelines.

Total stock at ports and in pipelines marginally decreased to 2,320,000 tons from 2,330,000 tons in June 2016.

India’s monthly requirement is about 16.5 lakh tons and operate at 30 days stock against which currently holding stock over 23.20 lakh tons equal to 42 days requirements. The overall stock as on 1st July, 2016 has decreased by 10,000 tons compared to 1st June, 2016.



(By Commoditiecontrol Bureau; +91-22-40015533)