FNB News - Import of vegetable oils during April 2018 reported at 13,86,466 tonne

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Import of vegetable oils during April 2018 reported at 13,86,466 tonne

Saturday, 19 May, 2018, 08 : 00 AM [IST]

Our Bureau, New Delhi

The Solvent Extractors’ Association of India has compiled the import data of vegetable oils (edible and non-edible) for the month of April 2018. The import of vegetable oils during April 2018 was reported at 13,86,466 tonne, compared to 13,39,489 tonne in April 2017 and 11,46,051 tonne the previous month (March 2018).

This consisted of 13,68,616 tonne of edible oils and 17,850 tonne of non-edible oils (i e up by 3.5 per cent). The overall import of vegetable oils between November 2017 and April 2018 was reported at 73,18,295 tonne, compared to 71,38,265 tons (i e up by 2.5 per cent).

Import of vegetable oil (edible and non-edible) between November 2017 and April 2018

(Qty in MT)

Month	2017-18			2016-17			Percentage Change
Month	Edible	Non-Edible	Total	Edible	Non-Edible	Total	Percentage Change
November 2017	12,25,315	23,49	12,48,810	11,55,863	19,601	11,75,464	(+) 6%
December 2017	10,58,289	30,494	10,88,783	11,74,296	35,389	12,09,685	(-) 10%
January 2018	12,46,847	44,294	12,91,141	10,12,085	16,774	10,28,859	(+) 25%
February 2018	11,24,999	32,045	11,57,044	12,34,255	36,188	12,70,443	(-) 9%
March 2018	11,22,685	23,366	11,46,051	10,97,876	16,449	11,14,325	(+) 3%
April 2018	13,68,616	17,850	13,86,466	13,24,014	15,475	13,39,489	(+) 3.5%
Total	71,46,751	1,71,544	73,18,295	69,98,389	1,39,876	71,38,265	(+) 2.5%

On March 1, 2018, the Government of India increased import duty on crude palm oil, RBD Palmolein and RBD Palm Oil. The import duty on CPO increased to 44 per cent from 30 per cent (effective duty 48.4 per cent) and RBD Palmolein and Refined Palm Oil to 54 per cent from 40 per cent (effective duty 59.4 per cent) without changes in import duty on sunflower oil, rapeseed oil and soybean oil.

This increase in duty is a welcome step. Yet, the government has missed the opportunity to provide a 20 per cent duty difference between crude and refined oils, as requested by the Association to encourage the domestic refining industry and promote Make in India.

Stock position at port and in pipeline
The stock of edible oils as on May 1, 2018 at various ports is estimated at 10,68,000 tonne [CPO 4,80,000 tonne, RBD Palmolein 2,05,000 tonne, Degummed Soybean Oil 1,40,000 tonne, Crude Sunflower Oil 2,20,000 tonne and 23,000 tonne of Rapeseed (Canola) Oil] and about 1,270,000 tonne in pipelines. Total stock at ports and in pipelines is reported at 2,338,000 tonne, increased by 2,26,000 tonne from 21,12,000 tonne in April 2018. India’s total demand for edible oils during 2017-18 is estimated at 23 lakh tonnes. The monthly requirement is about 19 lakh tonne and operate at 30-day stock against which currently holding stock over 23.38 lakh tonne equal to 37 days’ requirements.

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

	May 1, 2018	April 1, 2018	March 1, 2018	February 1, 2018	January 1, 2018	December 1, 2017	November 1, 2017	October 1, 2017	September 1, 2017	August 1, 2017	July 1, 2017	June 1, 2017	May 1, 2017
Port stock	1,068	770	757	855	876	847	884	979	907	883	738	770	785
Pipe lines	1,270	1,342	1,440	1,340	1,300	1,420	1,460	1,610	1,590	1,540	1,390	1,335	1,335
Total stock	2,338	2,112	2,197	2,195	2,176	2,267	2,344	2,589	2,497	2,473	2,278	2,160	2,120

Import of palm products
Palm oil constitute a 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 utilisation.

Import of Palm Oil-November 2017 to April 2018 (Qty in MT)

Year (November to October)	RBD Palmolein	CPO	CPKO	Total
November 2017	1,47,362 (21 per cent)	5,59,584 (78 per cent)	10,022 (one per cent)	7,16,968
December 2017	1,06,924 (15 per cent)	6,08,405 (84 per cent)	7,528 (one per cent)	7,22,857
January 2018	1,50,664 (18 per cent)	6,72,762 (81 per cent)	11,018 (one per cent)	8,34,444
February 2018	2,02,409 (27 per cent)	5,46,009 (72 per cent)	11,827 (one per cent)	7,60,245
March 2018	1,63,222 (21 per cent)	5,91,985 (78 per cent)	5,493 (one per cent)	7,60,700
April 2018	2,09,772 (27 per cent)	5,56,822 (71 per cent)	12,290 (two per cent)	7,78,884
November 2017 and April 2018 November 2016 and April 2017	9,80,353 (21 per cent) 13,67,951 (32 per cent)	35,35,567 (78 per cent) 29,06,439 (67 per cent)	58,178 (one per cent) 31,745 (one per cent)	45,74,098 43,06,135
2016-17	28,70,928 (31 per cent)	63,35,321 (68 per cent)	87,468 (one per cent)	92,93,717
2015-16	26,23,002 (31 per cent)	57,49,231 (68 per cent)	70,607 (one per cent)	84,42,840
2014-15	16,59,070 (17 per cent)	77,24,077(81 per cent)	1,53,757 (two per cent)	95,36,904
2013-14	15,76,354 (20 per cent)	62,52,788 (78 per cent)	1,28,818 (two per cent)	79,57,960

Import of palm and soft oil ratio
Between November 2017 and April 2018, the overall palm oil import has increased to 45,74,098 tonne from 43,06,135 tonne, thanks to the withdrawal of export duty by Malaysia, while soft oil import decreased to 25,72,653 tonne from 26,92,254 tonne during the same period of last year. Also, a parcel of 3,000 tonne of cottonseed oil from United States arrived during April 2018.

Import of palm oil and soft oil (ratio) from November 2017 and April 2018
(Qty in MT)

Year (November and October)	Palm Oil		Soft Oil					%	Total
Year (November and October)	(RBD Palmolein + CPO + Crude Olein + CPKO)		Soybean	Sunflower	Rape	Others	Total
November 2017	7,16,968	59%	2,73,928	1,93,810	40,609	-	5,08,347	41%	12,25,315
December 2017	7,22,857	68%	79,250	2,36,655	19,527	-	3,35,432	32%	10,58,289
January 2018	8,34,444	67%	2,24,870	1,70,831	16,702	-	4,12,403	33%	12,46,847
February 2018	7,60,245	68%	1,33,787	2,12,531	18,436	-	3,64,754	32%	11,24,999
March 2018	7,60,700	68%	1,15,102	2,10,269	36,614	-	3,61,985	32%	11,22,685
April 2018	7,78,884	57%	2,64,750	2,94,450	27,520	3,012*	5,89,732	43%	13,68,616
November 2017 to April 2018 November 2016 and April 2017	45,74,098 4,306,135	64% 62%	10,91,687 13,49,526	13,18,546 11,84,573	1,59,408 1,52,065	3,012 6,090	2,572,653 26,92,254	36% 38%	71,46,751 69,98,389
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/tonne)

Oils	April 2018	March 2018	February 2018	January 2018	December 2017	November 2017	October 2017	September 2017	August 2017	July 2017	June 2017	May 2017	April 2017
RBD Palmolein	673	678	677	669	661	702	716	729	684	683	700	727	705
Crude Palm Oil	664	671	675	669	662	703	717	730	670	681	697	725	706
Crude Soybean Oil	808	804	809	817	811	839	829	836	813	802	798	796	756
Crude Sunflower Oil	822	807	803	800	800	811	821	838	824	804	789	798	783
FE: $1 = (Average)	65.67	65.05	64.43	63.65	64.24	64.84	65.04	64.48	63.97	64.42	64.45	64.42	64.53

Since October 2016 and onwards, the landed price of RBD Palmolein and CPO have remained more or less the same encouraging import of RBD Palmolein.

Import of non-edible oils
Import of non-edible oils during November 2017 and April 2018 is reported at 1,71,544 tonne compared to 1,39,876 tonne during the same period last year (i e up by 23 per cent). This is mainly due to higher import of PFAD and CPS at nil duty under actual user condition, seriously affecting domestic refiners and main cause of disparity in domestic refining of palm oil.