Vegetable oil imports increased 75 per cent in August to touch a record high of 13,33,480 tonnes (7,57,830 tonnes).
The shipments were the highest-ever since imports were allowed in India under open general licence in 1994. The previous highest level was at 11.6 lakh tonnes recorded in January last year, according to the Solvent Extractors’ Association of India.
Import of vegetable oils into the country was boosted by the scrapping of duty by Malaysia, one of the largest exporters of edible oil. Saddled by huge inventory, the exporting countries have decided to do away with the export duty on palm products.
Malaysia has allowed duty-free export of palm products since September from $35 a tonne in August, while Indonesia, which charges nine per cent or $66 a tonne, on exports is expected to follow suit in October, the association said.
Edible oil prices
Domestic edible oil prices may come under pressure, with the exporting countries largesse and a sharp fall in international prices to 2008-levels. The expected fall in prices may cast a gloom on farmers growing oilseeds as they will harvest their kharif crop in the next 5 to 6 weeks.
There is an urgent need to support farmers by increasing the import duty on crude vegetable oils to 10 per cent from 2.5 per cent and refined vegetable oils to 25 per cent from 10 per cent, it said.
Inventory pile-up
Import of soybean oil in August jumped to a record level of 3,50,373 tonnes in August breaching the previous high of 3,06,068 tonnes logged in the preceding month. India imported 1,321,345 tonnes of edible oil and 12,135 tonnes of non-edible oil.
However, import of non-edible oil in August more than halved to 12,135 tonnes (28,794 tonnes). The overall import of non-edible oil in the past ten months was down 37 per cent at 155,926 tonnes (246,724 tonnes). Major non-edible oils that were shipped in include palm fatty acid distillate and crude palm kernel oil.
As on September 1, edible oil stock at various ports is estimated at 860,000 tonnes, up by about 50 per cent from the previous month and about 960,000 tonnes is in the pipeline.
Inventory at ports includes 3,60,000 tonnes of crude palm oil, 1,05,000 tonnes of refined palmolein, 2,50,000 tonnes of degummed soybean oil, 1,40,000 tonnes of crude sunflower oil and 5,000 tonnes of rapeseed (Canola Oil). Total stock, both at ports and in pipelines, increased to 18,20,000 tonnes from 15,90,000 tonnes in August.