India: Vegetable Oil Imports Down By 9% In February

Vegetable oil imports into India dropped by 9% to 11.57 lakh tonnes (lt) as compared to 12.70-lt shipped in February 2017, according to data compiled by the Solvent Extractors’ Association (SEA) of India. The shipments included 11.25-lt of edible oil and 32,045 tonnes non-edible oil.

The overall import of vegetable oils during the current oil year from November 2017 to February 2018 was marginally higher at 47.86-lt compared to 46.84-lt recorded in the same year-ago period. The government had increased import duty on crude and refined palm oils with effect from March 1.

Import duty on crude palm oil (CPO0 was increased to 44% from 30% (effective duty 48.4%) and RBD palm olein and refined palm oil to 54% from 40% (effective duty 59.4%) without changes in import duty on sunflower, rapeseed and soybean oils. The association said that the government has missed the opportunity to provide a 15% duty difference between crude and refined oil to encourage domestic refining industry. It has also called for increased import duty on rapeseed, mustard, canola, soybean and sunflower oils to support farmers.

During the November 2017-February 2018 period, while import of refined oil decreased significantly as compared to the same period of last year, crude oil import increased to 40.48-lt compared to 36.60-lt in year-ago period. Overall palm oil import increased during the period under review, while soft oils imports declined.

“Since October 2016 landed price of RBD Palmolein and CPO have remained more or less the same, encouraging imports of RBD Palmolein at the cost of CPO. The spread between palm oil and soft oil has also reduced, encouraging larger import of soft oils,” SEA said in a press note.