Vegetable Oil Imports Rise by Over 3% in April

Import of vegetable oils during April 2018 stood at 1,386,466 tonnes compared with 1,339,489 tonnes in the same month last year, showing a growth of 3.5 per cent, as per data compiled by the Solvent Extractors’ Association of India (SEA).

The imports in April were reported highest so far during the current oil year (November 2017-October 2018 period). Overall import of vegetable oils during November 2017 to April 2018 stood at 7,318,295 tonnes compared with 7,138,265 tonnes, up 2.5 per cent.

On March 1, 2018, the government had increased import duty on crude palm oil (CPO), RBD palmolein and RBD palm oil. As a result, 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 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 domestic refining industry and promote ‘Make in India’,” SEA said in a statement.

Due to nearly same landed cost of RBD palmolein and CPO, there is more import of RBD palmolein (finished product) over CPO (raw material). This, according to SEA has seriously hurt the domestic refiners’ capacity utilisation. Palm oil account for a major share in imports by India. During November 2017-April 2018 period, overall palm oil import has increased to 4,574,098 tonnes from 4,306,135 tonnes, thanks to withdrawal of export duty by the Malaysia, while soft oils import decreased to 2,572,653 tonnes from 2,692,254 tonnes during the same period of last year, SEA said.

Import of non-edible oils during November 2017-April 2018 period stood at 171,544 tonnes compared with 139,876 tonnes during the same period last year, indicating an increase of 23 per cent.