“Edible and non-edible veg oil import in June ’17 up by 15%,” says SEA
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Saturday, 15 July, 2017, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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The Solvent Extractors’ Association of India (SEA) has compiled the import data of edible and non-edible vegetable oils for the month of June 2017. Import of vegetable oils during June 2017 was reported to be 1,344,868 ton vis-a-vis 1,169,456 ton in June 2016 (i e up by 15 per cent).
This consisted of 1,293,777 ton of edible oils and 51,091 ton of non-edible oils. The overall import of vegetable oils during the first eight months of the current oil year 2016-17 (i e between November 2016 and June 2017) was reported to be 9,863,572 ton vis-a-vis 9,763,043 ton.
Import of vegetable oil (Edible and non-edible) between November 2016 and June 2017
(Quantity
in million ton)
Month
|
2016-17
|
2015-16
|
%
|
Edible
|
Non-edible
|
Total
|
Edible
|
Non-edible
|
Total
|
November
2016
|
11,55,863
|
19,601
|
11,75,464
|
13,32,936
|
4,499
|
13,37,435
|
(-)
12%
|
December2016
|
11,74,296
|
35,389
|
12,09,685
|
14,09,435
|
11,467
|
14,20,902
|
(-)
15%
|
January
2017
|
10,08,085
|
16,774
|
10,24,859
|
12,55,054
|
3,000
|
12,58,054
|
(-)
19%
|
February
2017
|
12,34,255
|
36,188
|
12,70,443
|
10,96,424
|
16,492
|
11,12,916
|
(+)
14%
|
March
2017
|
10,97,876
|
16,449
|
11,14,325
|
11,76,312
|
14,203
|
11,90,515
|
(-)
6%
|
April
2017
|
13,24,014
|
15,475
|
13,39,489
|
12,36,068
|
12,819
|
12,48,887
|
(+)
7%
|
May
1,
2017
|
13,23,792
|
60,647
|
13,84,439
|
10,04,685
|
20,193
|
10,24,878
|
(+)
35%
|
June
1,
2017
|
12,93,777
|
51,091
|
13,44,868
|
11,58,902
|
10,554
|
11,69,456
|
(+)
15%
|
Total
|
96,11,958
|
2,51,614
|
98,63,572
|
96,69,816
|
93,227
|
97,63,043
|
(+)
1%
|
Current situation Currently, soybean, rapeseed and groundnut are being sold below the minimum support price (MSP) and prices have dropped between 20 and 30 per cent of the last year’s level. The current prices are the lowest in the last five years.
Farmers are totally discouraged from sowing oilseeds, and may switch over to cotton and other cash crops.
With a view to ensure that farmers do not lose interest in oilseed cultivation, SEA has strongly suggested to the Centre that the import duty on crude oil be raised to 20 per cent and that on refined oil to 35 per cent with immediate effect.
Stock position at port and in pipeline The stock of edible oils as on July 1, 2017 at various ports was estimated to be 738,000 tons. This includes 2,70,000 ton of crude palm oil (CPO), 1,50,000 ton of RBD palmolein, 1,60,000 ton of degummed soybean oil, 1,40,000 ton of crude sunflower oil and 18,000 ton of rapeseed (canola) oil. There are about 1,540,000 ton in pipelines.
The total stock at ports and in pipelines increased to 22,78,000 ton from 21,60,000 ton in June 2017.
India’s monthly requirement is about 17.50 lakh ton, and operate at 30 days’ stock, against which the current holding stock is over 22.78 lakh ton equal to 39 days’ requirements.
Stock position at ports and pipelines
(Quantity in ’000 million ton)
|
July
1,
2017
|
June
1,
2017
|
May
1, 2017
|
April
1,
2017
|
March
1, 2017
|
February
1, 2017
|
January
1, 2017
|
December
1,
2016
|
November
1, 2016
|
October
1, 2016
|
September
1, 2016
|
August
1, 2016
|
July
1, 2016
|
Port
stock
|
738
|
770
|
785
|
688
|
775
|
642
|
695
|
655
|
705
|
860
|
755
|
770
|
878
|
Pipelines
|
1,540
|
1,390
|
1,335
|
1,225
|
1,190
|
1,088
|
1,150
|
1,170
|
1,230
|
1,230
|
1,300
|
1,380
|
1,442
|
Total
stock
|
2,278
|
2,160
|
2,120
|
1,913
|
1,965
|
1,730
|
1,845
|
1,825
|
1,935
|
2,090
|
2,055
|
2,150
|
2,320
|
Import of refined and crude oil ratio Between November 2016 and June 2017, import of refined oil (RBD palmolein) has sharply increased to 19,03,056 ton from 17,77,839 ton in the same period of last year, while the import of crude oil decreased to 77,08,902 ton from 78,92,977 ton during the same period of last year.
Import of refined and crude edible oils (ratio) between November 2016 and June 2017
(Quantity in million ton)
Year
(November-October)
|
Refined
oils
|
Percentage
|
Crude
oils
|
Percentage
|
Total
|
November
2016
|
2,40,948
|
21%
|
9,14,915
|
79%
|
11,55,863
|
December
2016
|
2,45,554
|
21%
|
9,28,742
|
79%
|
11,74,296
|
January
2017
|
1,96,623
|
20%
|
8,11,462
|
80%
|
10,08,085
|
February
2017
|
2,33,313
|
19%
|
10,00,942
|
81%
|
12,34,255
|
March
2017
|
2,19,270
|
20%
|
8,78,606
|
80%
|
10,97,876
|
April
2017
|
2,32,243
|
18%
|
10,91,771
|
82%
|
13,24,014
|
May
2017
|
2,94,409
|
22%
|
10,29,383
|
78%
|
13,23,792
|
June
2017
|
2,40,696
|
19%
|
10,53,081
|
81%
|
1,29,37,777
|
(November
2016-April
2017)
(November
2015-April
2016)
|
19,03,056
17,76,839
|
20%
18%
|
77,08,902
78,92,977
|
80%
82%
|
96,11,958
96,69,816
|
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 Between November 2016 and June 2017, palm oil import has increased to 59,21,563 ton from 56,05,473 ton during the same period of last year. The overall share of palm oil products increased to 62 per cent from 58 per cent, thanks to the larger import of RBD palmolein. Soft oil imports reduced to 36,90,395 ton from 40,64,343 ton last year. However, within soft oils, the import of sunflower oil has sharply increased at the cost of soybean oil.
Import of palm oil and soft oil (ratio) between November 2016 and June 2017
(Quantity in million ton)
Year
(November-October)
|
Palm
oil
|
Soft
oil
|
Percentage
|
Total
|
|
(RBD
palmolein
+ CPO
+
crude
olein
+ CPKO)
|
Soybean
|
Sunflower
|
Rape
|
Safflower
|
Total
|
November
2016
|
8,01,311
|
69%
|
1,64,286
|
1,58,071
|
32,195
|
-
|
3,54,552
|
31%
|
11,55,863
|
December
2016
|
7,23,158
|
62%
|
2,32,132
|
1,85,824
|
33,182
|
-
|
4,51,138
|
38%
|
11,74,296
|
January
2017
|
6,08,762
|
60%
|
1,66,573
|
2,14,872
|
17,878
|
-
|
3,99,323
|
40%
|
10,08,085
|
February
2017
|
7,36,207
|
60%
|
2,51,740
|
2,09,422
|
36,886
|
6,090
|
4,98,048
|
40%
|
12,34,255
|
March
2017
|
6,80,065
|
62%
|
2,29,853
|
1,81,868
|
-
|
-
|
4,17,811
|
38%
|
10,97,876
|
April
2017
|
7,52,632
|
57%
|
3,04,942
|
2,34,516
|
31,924
|
6,090
|
5,71,382
|
43%
|
13,24,014
|
May
2017
|
7,99,346
|
60%
|
3,40,365
|
1,54,938
|
29,143
|
-
|
5,24,446
|
40%
|
13,23,792
|
June
2017
|
8,20,082
|
63%
|
2,90,904
|
1,69,345
|
13,446
|
-
|
4,73,695
|
37%
|
12,93,777
|
November
2016-June
2017
November
2015-June
2016
|
59,21,563
56,05,473
|
62%
58%
|
19,80,795
28,05,254
|
15,08,856
10,68,887
|
1,94,654
1,90,202
|
6,090
-
|
36,90,395
40,64,343
|
38%
42%
|
96,11,958
96,69,816
|
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 From April 2016 onwards, the landed price of RBD palmolein has either remained the same as or lower than that of CPO, encouraging larger import of RBD palmolein at the cost of CPO. The spread between palm oil and soft oil reduced encouraging a larger import of soft oils. Importers continue to make larger import purchases of sunflower oil, taking advantage of the attractive price vis-à-vis soy oil. Also, the strengthening of the rupee in the last six months supported the import of vegetable oils.
(Price in $/CIF Indian port/ton)
Oils
|
June
2017
|
May
2017
|
April
2017
|
March
2017
|
February
2017
|
January
2017
|
December
2016
|
November
2016
|
October
2016
|
September
2016
|
August
2016
|
July
2016
|
June
2016
|
RBD
palmolein
|
700
|
727
|
705
|
731
|
773
|
788
|
773
|
729
|
709
|
759
|
735
|
643
|
669
|
Crude
palm
oil
|
697
|
725
|
706
|
734
|
783
|
794
|
772
|
729
|
704
|
753
|
730
|
642
|
669
|
Crude
soybean
oil
|
798
|
796
|
756
|
767
|
812
|
857
|
887
|
844
|
827
|
803
|
804
|
751
|
768
|
Crude
sunflower
oil
|
789
|
798
|
783
|
791
|
814
|
824
|
836
|
826
|
834
|
843
|
845
|
848
|
867
|
FE:
$1
=
(Average)
|
64.45
|
64.42
|
64.53
|
65.8
|
66.97
|
68.04
|
67.8
|
67.64
|
66.74
|
66.71
|
66.9
|
67.15
|
67.27
|
Import of non-edible oils: Sharp rise in RBD palm stearin The import of non-edible oils between November 2016 and June 2017 is reported at 2,51,614 ton compared to 93,227 ton during the same period last year. PFAD, PKFAD, CPS and RBD palm stearin were the major import of non-edible oils.
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