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India’s vegetable oil imports reported a sharp increase of 34 per cent for the month of July 2017 at 1,524,724 tonnes compared to 1,140,685 tonnes in the same month last year.
However, overall vegetable oil imports for the first nine months of the current oil year (November 2016 – October 2017) stood at 11,388,296 tonnes as compared to 10,903,728 tonnes last year, showing a 4-per cent increase.
According to data compiled by the Solvent Extractors’ Association of India (SEA), total edible oil imports stood at 11,101,095 tonnes for the nine-month period, which is higher by close to 3 per cent year-on-year.
During the November 2016-July 2017 period, import of refined oil (RBD Palmolein) sharply increased to 2,197,455 tonnes from 1,984,069 tonnes in the same period last year, Also, import of crude oil increased to 8,903,640 tonnes from 8,803,813 tonnes during the same period of last year.
Duty hike welcomed However, the Centre has hiked the duty difference between crude palm oil and refined palm oil, a long overdue demand from the industry. The move received positive feedback from the industry
The government has increased the import duty on crude palm oil from 7.5 per cent to 15 per cent. Similarly, duty on RBD palm (refined palm oil) was hiked from 15 per cent to 25 per cent and on crude soft oils such as soybean oil from 12.5 per cent to 17.5 per cent, with effect from August 11, 2017.
The differential duty on import of refined vis-a-vis crude palm oil stands at 10 per cent against 7.5 per cent earlier.
“This will make domestic refining competitive, in line with the ‘Make in India’ credo as we move towards nutritional security,” said Dinesh Shahra, Founder and MD, Ruchi Soya Industries.
The hike in duty difference is expected to bring down the quantum of import of refined palm oils, which was swamping the market.
SEA had raised concerns about dwindling oilseed acreage in the country due to persistently low prices.
Currently, soybean, rapeseed and groundnut are being sold below MSP and prices have dropped between 20 per cent to 30 per cent below last year’s level, the SEA said in a statement.
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