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The Solvent Extractors’ Association of India (SEA) estimates sunflower oil import will drop to around 80,000 tonnes in April, as against 2.21 lakh tonnes (lt) imported in March.
BV Mehta, Executive Director of SEA, said India had imported 1.27 lt of sunflower oil from Ukraine, 73,500 tonnes from Russia, and 11,900 tonnes from Argentina in March.
He said these consignments had left these countries before the Russia-Ukraine conflict broke out on February 24.
However, there has been no shipment from Ukraine in April, so sunflower oil import may fall to nearly 80,000 tonnes as supplies are expected only from Russia and Argentina, he said.
High international prices at $2,200 a tonne, lessened availability, and high domestic prices at ₹1.72 lakh a tonne have together shrunk the demand and consumption of sunflower oil, he said.
The average CIF (cost, insurance and freight) price for crude sunflower oil import stood at $2,125 a tonne in March against $1,506 a tonne in February.
Partial replacement
The shortfall is being replaced partially by other edible oils such as palmolein, soyabean oil, and groundnut oil in South India; and by refined mustard oil and rice bran oil in North India. Also, prices of soya oil, sunflower oil, palm oil and other edible oil declined during the past month, providing some relief to consumers, Mehta said.
India imported 10.55 lt of sunflower oil during November-March of the oil year 2021-22 against 9.17 lt in the corresponding period of 2020-21. The oil year ranges from November to October. India imported 8.42 lt (8.08 lt) from Ukraine, 1.94 lt (82,673 tonnes) from Russia, and 18,000 tonnes from Argentina.
Overall imports
Overall, edible oil imports went up to 10.51 lt in March against 9.83 lt in February. The import of edible oils went up to 56.42 lt in the first five months of the oil year 2021-22 against 52.40 lt in the corresponding period a year ago.
Mehta said the import of RBD palmolein increased to 7.71 lt during November-March 2021-22 compared with 24,101 tonnes in the year-ago period. . Import of crude palm oil (CPO) decreased to 18.47 lt in November-March 2021-22 against 29.95 lt.
Stating that the Union Ministry of Finance had reduced the Agriculture Infrastructure and Development Cess on CPO imports to 5 per cent from the prevailing 7.5 per cent, on the SEA’s plea for larger duty difference, he said this increased the duty differential between CPO and RBD oils to 8.25 per cent from the earlier 5.5 per cent. “This provided a minor relief to the beleaguered refining industry, but not enough,” he said.
During the first five months of the oil year 2021-22, the country imported 19.33 lt (12.32 lt) of crude soyabean oil.
Palm vs soft oils
On the ratio of palm oil and soft oil imports, he said the import of palm oil (both crude and refined) decreased to 26.53 lt (47 per cent) during November-March 2021-22 from 30.90 lt (59 per cent) a year ago. Import of soft oils increased to 29.89 lt (53 per cent) from 21.49 lt (41 per cent).
The average CIF price for RBD palmolein import stood at $1,812 a tonne in March against $1,581 a tonne in February, and for CPO at $1,828 a tonne in March against $1,594 a tonne in February.
The average CIF price for crude soyabean oil import stood at $1,854 a tonne in March as against $1,595 a tonne in February.
During November-March 2021-22, Malaysia supplied 11.52 lt of CPO and 2.89 lt of RBD palmolein, and Indonesia supplied 5.01 lt of CPO and 4.74 lt of RBD palmolein to India.
India imported 12.60 lt of crude soyabean degummed oil from Argentina, and 4.28 lt from Brazil.
Veg oils
Overall import of vegetable oils (including both edible and non-edible oils) stood at 11.04 lt in March compared with 9.80 lt in March 2021. Import of vegetable oils increased to 57.95 lt during the first five months of the oil year 2021-22 compared to 53.75 lt in the same period of 2020-21.
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