Imports of RBD palmolein into India witnessed a huge jump in the first month of the oil year 2033-24 (November 2023-October2024). This resulted in total edible oil imports into the country increasing by 15.13 per cent in November compared with October. However, compared with November last year, imports declined by 24.90 per cent.

Data compiled by Solvent Extractors’ Association of India (SEA) showed that India imported 11.48 lakh tonnes (lt) of edible oil in November against 9.97 lt in October and 15.28 lt in November 2022.

Imports of RBD palmolein were 1.71 lt against 53,497 tonnes in October, recording a growth of 219.77 per cent. RBD palmolein imports were 2.02 lt in November 2022.

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The country’s import of crude palm oil (CPO) was 6.92 lt against 6.41 lt in October and 9.31 lt in November 2022.

Against national interests

Stating that the excessive import of RBD palmolein is hitting the domestic refiners, BV Mehta, Executive Director of SEA, said the current effective import duty difference of 8.25 per cent between CPO (5.50 per cent) and refined oil (13.75 per cent) encourages import of refined palmolein into India as opposed to CPO.

He said this import of finished goods is contrary to India’s national interests and is seriously affecting the capacity utilisation of Indian palm refining industry.

“The main reason for the rise in palmolein imports is the encouragement given by exporting countries (Malaysia and Indonesia) to their industry. They have kept high export duties on crude palm and low export duty on palmolein (finished product). The import duty difference of 8.25 per cent levied by India between CPO and palmolein is insufficient to regulate the imports of palmolein,” he said.

SEA has recommended rasing the duty difference to 15 per cent between CPO and RBD palmolein. This would help to reduce palmolein imports and replace them with CPO shipments. He said overall imports into the country would not be affected and it will have no impact on edible oil inflation. “On the contrary, it will help improve capacity utilisation and employment generation in our country. This would also be in line with our Prime Minister’s vision of ‘Make in India’,” he said.

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Indonesia supplied 4.10 lt of CPO and 1.54 lt of RBD palmolein during November. This was followed by Malaysia at 1.95 lt of CPO and 16,343 tonnes of RBD palmolein during the period.

Soft oils shipments decline

India’s import of crude sunflower oil declined to 1.28 lt in November 2023 from 1.53 lt in October 2023 and 1.57 lt in November 2022.

India imported imported 61,855 tonnes of crude sunflower oil from Russia, followed by 37,052 tonnes from Argentina and 29,800 tonnes from Romania, during November.

Import of crude soyabean de-gummed oil increased to 1.49 lt against 1.35 lt in October. India imported 2.29 lt of crude soyabean oil in November 2022.

The country’s import of crude soyabean de-gummed oil was at 93,893 tonnes from Argentina, followed by 3,000 tonnes from Brazil. Other countries exported 53,001 tonnes during the period.

Domestic stock

The stock of edible oils at various ports was estimated at 9.85 lt as on December 1. This included 3.81 lt of CPO, 1.49 lt of RBD palmolein, 3 lt of de-gummed soyabean oil, and 1.55 lt of crude sunflower oil. The pipeline stock was estimated at 19.75 lt.

The total stock was estimated at 29.60 lt as on December 1 as against 31.39 lt as on November 1.

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