Agri Business

Vegoil imports up 13% in Nov as prices fall on excess supply

Our Bureau Mumbai | Updated on January 22, 2018 Published on December 14, 2015

Vegoil





Vegetable oil imports increased 13 per cent in November to 13.42 lakh tonnes (lt) against 11.89 lt logged in the same period last year, largely due to excess supply in the international market dragging down price.

The exporting countries Indonesia and Malaysia boosted their export by allowing duty-free exports to reduce their inventory. India imported 13.37 lt of edible oil and 4,499 tonnes of non-edible oil.

Domestic edible oil industry and farming communities are hit by the current upward trend in edible oil imports, which has increased 24 per cent to 14.4 mt between November 2014 and October 2015. It is a well-known fact that globally the prices of edible oil are historically low since 2008 and had affected the domestic industry hard, said BV Mehta, Secretary, Solvent Extractors’ Association.

The price difference between the imported and domestically produced palmolein is about ₹3,000 a tonne. SEA has made a representation with the Centre to revise the duty structure of crude and refined oil to at least 15 per cent by raising import duty on refined oil from 20 per cent to 27.5 per cent.

This action will also ensure that farmers get remunerative price for their produce in ensuing rabi season and will help the domestic refiners to improve capacity utilisation from 45-50 per cent to 65-70 per cent, it said.

As of November 1, edible oil inventory has hit a record high. Stock at various ports is estimated at 10.20 lt – CPO of 5 lt, refined palmolein 1.85 lt, degummed soyabean oil 1.55 lt, crude sunflower oil 1.30 lt and 50,000 tonnes of rapeseed and another 14.10 lt is in the pipeline.

Total stock at ports and in pipelines increased to 24.30 lt in November from 23.70 lt in the same period last year. India’s monthly requirement is about 16 lt.

Published on December 14, 2015
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