The Hindu Business Line : Soyabean oil imports turn cheaper than crude palm oil

But an interesting twist to the imports angle is that import of degummed soyabean oil has turned out to be cheaper than crude palm oil, thanks to the duty structure for both the oils.

According to the Solvent Extractors Association of India, though the import ratio of palm oil and soft oils is still the same as last year's 60:40, it could change given the fact that it is now more attractive to import degummed soyabean oil. (See table)

The Customs duty on degummed soyabean oil is lower at 45 per cent against 81.6 per cent being levied for palm group of oils. This disparity in the duty structure is due to India's commitment to the World Trade Organisation, where it has agreed to bind the tariff on soyabean oil import at 45 per cent.

A year ago, the landed price of crude palm oil was cheaper by $135 (Rs 5,976) a tonne than degummed soyabean oil. But with the Centre raising the customs duty on palm oil in the current fiscal budget, the landed price of degummed soyabean oil is currently cheaper by $25 (Rs 1,107).

Surge in sunflower oil import: The other interesting fact as regards edible oil imports is that sunflower oil shipment into the country picked up during January. Its import totalled 38,749 tonnes, mainly under the tariff rate quota. Between November and January, edible oils import totalled 7.77 lakh tonnes against 9.56 lakh tonnes during the same period a year ago.

Of the total edible oil imports during November-January, palm group of oils made up 4.56 lakh tonnes (5.70 lakh tonnes), while soft oils comprising soyabean, sunflower, rapeseed and other oils made up 3.21 lakh tonnes. (3.85 lakh tonnes.)

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