FNB News - Vegetable oil import for November 2017 increases by 7% to 12,48,810 MT

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ANALYSIS

Vegetable oil import for November 2017 increases by 7% to 12,48,810 MT

Monday, 18 December, 2017, 08 : 00 AM [IST]

Our Bureau, Mumbai

The Solvent Extractors’ Association (SEA) of India has compiled the import data of vegetable oils (edible and non-edible) for the month of November 2017. It was reported at 12,48,810 metric ton (MT) compared to 11,67,397 MT in October 2017 (a seven per cent increase) and 1,175,464 MT in November 2016.

Import of vegetable oil (Edible and non-edible)
(Quantity in MT)

Edible oils	Nov 2017	Oct 2017	Nov 2016
RBD Palmolein	1,47,362	1,47,441	2,40,948
Crude Palm Oil	5,59,584	5,97,217	5,57,364
Crude Sunflower Oil	1,93,810	1,28,791	1,58,071
Crude Soybean Oil	2,73,928	2,20,200	1,64,286
Rape Oil (Canola)	40,609	37,468	32,195
Crude Palm Kernel Oil	10,022	3,000	2,999
Sub-total	12,25,315	11,34,117	11,55,863
P F A D	12,996	27,141	9,423
P K F A D	1,000	-	-
C P K O	-	-	-
RBD Palm Sterin	9,499	6,139	8,178
Others	-	-	2,000
Sub-total	23,495	33,280	19,601
Grand total	12,48,810	11,67,397	11,75,464

Hike in import duty
The government of India recently raised the import duty on edible oils by 12.5 per cent to 15 per cent across the board to support the farmers to receive the remunerative prices for their produce.

This announcement has changed the sentiments, and the market has moved upward. And now the prices of soybean and groundnut touched the minimum support price (MSP) which were ruling much below prior to the announcement.

While the hike in duty, inadvertently cottonseed oil duties were not raised and remained unchanged at 12.5 per cent on crude and 20 per cent on refined cottonseed oil, which has created an anomalous situation and harming the interest of cottonseed farmers.

The association has since represented to the government of India to raise the duty on crude and refined cottonseed oils on the lines of other crude and refined oils.

Stock position at port and in pipeline
The stock of edible oils as on December 1, 2017 at various ports was estimated at 8,47,000 ton.

This comprised 3,45,000 ton of CPO, 1,15,000 ton of RBD Palmolein, 2,00,000 ton of Degummed Soybean Oil, 1,80,000 ton of Crude Sunflower Oil and 7,000 tons of Rapeseed (Canola) Oi) and about 14,20,000 ton in pipelines.

The total stock at ports and in pipelines was reported at 22,67,000 ton. It decreased by 77,000 ton from 23,44,000 ton in November, 2017.

India’s monthly requirement was about 18 lakh tons and operate at 30 days’ stock, against which the current holding stock, over 22.67 lakh ton, equalled 38 days’ requirements.

Stock position at ports and pipelines (Quantity in ’000 MT)

	Dec1, 2017	Nov1, 2017	Oct 1, 2017	Sept 1, 2017	Aug 1, 2017	July 1, 2017	June 1, 2017	May 1, 2017	April 1, 2017	March 1, 2017	Feb 1, 2017	Jan 1, 2017	Dec 1, 2016
Port stock	847	884	979	907	883	738	770	785	688	775	642	695	655
Pipe lines	1,420	1,460	1,610	1,590	1,540	1,390	1,335	1,335	1,225	1,190	1,088	1,150	1,170
Total stock	2,267	2,344	2,589	2,497	2,473	2,278	2,160	2,120	1,913	1,965	1,730	1,845	1,825

Import of refined and crude oil ratio
In November 2017, the import of refined oil (RBD Palmolein) has decreased to 1,47,362 ton from 240,948 ton. However, during the same period, the import of crude oil increased and reported at 10,77,953 ton compared to 9,14,915 ton in November 2016.

Import of refined and crude edible oils (Ratio)
(Quantity in MT)

Year (Nov-Oct)	Refined oils	%	Crude oils	%	Total
Nov 2017 Nov 2016	1,47,362 2,40,948	12% 21%	10,77,953 9,14,915	88% 79%	12,25,315 11,55,863
2016-17	28,70,928	19%	1,22,06,492	81%	1,50,77,420
2015-16	26,23,002	18%	1,19,48,336	82%	1,45,71,338
2014-15	16,59,070	12%	1,27,62,201	88%	1,44,21,271
2013-14	15,76,354	14%	1,00,41,980	86%	1,16,18,334

Import of palm and soft oil ratio
In November 2017, palm oil import has decreased to 7,16,968 ton from 8,01,311 ton in November 2016. However, soft oil imports also increased to 5,08,347 ton from 3,54,552 ton last year.

Import of palm oil and soft oil (Ratio)
(Quantity in MT)

Year (Nov- Oct)	Palm Oil		Soft Oil					%	Total
Year (Nov- Oct)	(RBD Palmol ein + CPO + Crude Olein + CPKO)		Soybean	Sunflower	Rape	Others	Total
Nov 2017 Nov 2016	716,968 801,311	59% 69%	2,73,928 1,64,286	1,93,810 1,58,071	40,609 32,195	- -	5,08,347 3,54,552	41% 31%	12,25,315 11,55,863
2016-17	92,93,717	62%	33,16,207	21,68,754	2,92,652	6,090	57,83,703	38%	1,50,77,420
2015-16	84,42,840	58%	42,34,809	15,16,220	3,77,469	-	61,28,498	42%	1,45,71,338
2014-15	95,36,904	66%	29,85,944	15,42,599	3,55,824	-	48,84,367	34%	1,44,21,271
2013-14	79,57,960	68%	19,51,233	15,09,250	1,99,891	-	36,60,374	32%	1,16,18,334

Average prices and rupee depreciation
(Price in $/CIF Indian Port/Ton)

Oils	Nov 2017	Oct 2017	Sept 2017	Aug2017	July 2017	June2017	May 2017	April 2017	March 2017	Feb 2017	Jan 2017	Dec 2016	Nov 2016
RBD palmolein	702	716	729	684	683	700	727	705	731	773	788	773	729
Crude palm oil	703	717	730	670	681	697	725	706	734	783	794	772	729
Crude soybean oil	839	829	836	813	802	798	796	756	767	812	857	887	844
Crude sunflower oil	810	821	838	824	804	789	798	783	791	814	824	836	826
FE: $1 = (Average)	64.84	65.04	63.97	64.42	64.45	64.45	64.42	64.53	65.8	66.97	68.04	67.8	67.64

From October 2016 onwards, the landed price of RBD Palmolein and CPO have remained more or less the same, encouraging a larger import of RBD Palmolein at the cost of CPO. The spread between palm oil and soft oil also reduced, encouraging a larger import of soft oils.

Import of non-edible oils
Import of non-edible oils during November 2017 is reported at 23,495 ton only compared to 19,601 ton in the same period last year. P F A D, P K F A D, C P K O and RBD Palm Sterin are the major imported of non-edible oils.