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India’s import of edible oils increased to 15.93 lakh tonnes (lt) in September of the oil year 2021-22 (November to October) as against 13.75 lt in August this year, recording a growth of 15.89 per cent.
This has been powered by a 17.78 per cent growth in the import of palm oils (including refined palm oil and crude palm oil), an 18.11 per cent growth in the import of sunflower oil, and 7 per cent growth in soyabean oil during the period.
Data compiled by the Solvent Extractors’ Association (SEA) of India showed that India imported 11.71 lt (9.94 lt in August) of palm oil, 1.59 lt (1.35 lt) of sunflower oil, and 2.61 lt (2.44 lt) of soyabean oil during September.
RBD palmolein up
B.V. Mehta, Executive Director of SEA of India, said the import of RBD palmolein increased to 17.12 lt during the first 11 months of the oil year 2021-22, as against 6.28 lt in the corresponding period of the previous year, recording a growth of 172 per cent. He attributed this growth to a higher export levy on crude palm oil (CPO) and lower duty on RBD palmolein till three months ago. This favoured exporters of RBD palmolein from Indonesia to sell at a discount, to push exports during the current year.
He said RBD palmolein constituted 14 per cent of the total import of edible oils during the first 11 months of 2021-22. This was just 5 per cent last year.
Malaysia exported 28.13 lt of CPO and 5.30 lt of RBD palmolein during November-September of 2021-22, followed by Indonesia, which exported 17.15 lt of CPO and of 11.61 lt of RBD palmolein.
Palm versus soft oils
The overall import of palm oil in the total edible oils basket decreased to 70.28 lt (55 per cent of the total edible oils) during November-September of 2021-22, as against 76.27 lt (63 per cent) during the corresponding period of the previous year. The share of soft oils in the total edible oils import increased to 56.35 lt (45 per cent) during the first 11 months of 2021-22, from 44.58 lt (37 per cent) in the corresponding period of the previous year.
He attributed this growth to the higher import of soyabean oil. India imported 38.37 lt of soyabean oil during the first 11 months of 2021-22, as against 26.48 lt in the corresponding period of 2020-21. During November-September of 2021-22, India imported 24.28 lt of soyabean oil from Argentina, 10.64 lt from Brazil, and 1.59 lt from the US.
Top sunflower oil exporters
Russia and Argentina have emerged as the major exporters of sunflower since April. India bought about 1.59 lt of sunflower oil, mainly from Argentina (68,032 tonnes) and Russia (16,947 tonnes) in September. Export of sunflower oil from Ukraine, which was stopped due to its war with Russia, resumed in September with the export of 31,500 tonnes of cargo to India.
Price fall
Mehta said the sharp fall in international prices of edible oils in the last five months has cooled domestic prices as well. This has come as a great relief to consumers in the festival period. However, the sharp fall in prices has also led to a drop in domestic oilseed prices, near the MSP (minimum support price), causing concern to the Government, industry and farmers.
He said the price difference of over $400 a tonne between CPO and soyabean oil would encourage CPO imports in the coming months. The local price of edible oils has also moved down in the last five months. The wholesale price of RBD palmolein fell by over ₹70,000 a tonne, refined soyabean oil by ₹35,500 a tonne, and sunflower oil by nearly ₹48,500 a tonne.
Stating that importers of palm oil and soyabean oil suffered heavy financial losses during the last three-four months due to the absence of futures trading and hedging facility, he said there is an urgent need to allow futures trading in international commodities such as crude soyabean oil and CPO, and hedging facility for soyabean to boost the export of soyabean meal.
To support the domestic market, SEA has appealed to the Government to increase the import duty on CPO and RBD palmolein by at least 10 per cent to support farmers to receive remunerative price for his produce during the harvest period, he said.
Overall veg oils
The overall import of vegetable oils (including edible oils and non-edible oils) stood at 130.13 lt during the first 11 months of the oil year 2021-22, as against 124.70 lt in the corresponding period of the previous year.
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