India sees 25pc fall in vegetable oils import in Nov: SEA
Vegetable oils import in India fell by 25 per cent to 11.60 lakh tonne in November, the first month of the 2023-24 oil year, compared to 15.45 lakh tonne in the year-ago period. Of the total vegetable oil imports, edible oils were 11.48 lakh tonnes and non-edible oils 12,498 tonnes during November 2023, according to industry body Solvent Extractors Association of India (SEA).
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Vegetable oils import in India fell by 25 per cent to 11.60 lakh tonne in November, the first month of the 2023-24 oil year, compared to 15.45 lakh tonne in the year-ago period. Of the total vegetable oil imports, edible oils were 11.48 lakh tonnes and non-edible oils 12,498 tonnes during November 2023, according to industry body Solvent Extractors Association of India (SEA).
India, the world's leading vegetable oil buyer, imports refined and crude vegetable oils in the edible oil category. Oil year runs from November to October.
The country's crude vegetable oils import declined by 26.34 per cent to 9.77 lakh tonnes in November this year as against 13.26 lakh tonnes in the year-ago period, SEA data showed. Similarly, refined vegetable oils import declined by 15.41 per cent to 1,71,069 tonnes in November this year from 2,02,248 tonnes in the year-ago period.
Among crude vegetable oils, although the import of RBD palmolein declined in November 2023 to 1.71 lakh tonnes from 2.02 lakh tonnes in the year-ago period, but the shipments tripled from 53,497 tonnes in October this year.
SEA said the current effective import duty difference of 8.25 per cent between crude palm oil (CPO) and refined oil encourages imports of refined palmolien into the country as opposed to CPO.
"Needless to say this import of finished goods is contrary to our national interests and is seriously affecting the capacity utilisation of our Palm refining industry," SEA said in a statement.
The main reason for rise in palmolien 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 refined palmolien, it said.
"The import duty difference of 8.25 per cent levied by India between CPO and palmolien is insufficient to regulate the imports of palmolien," the industry body noted.
According to SEA data, import of CPO declined to 6.92 lakh tonnes in November this year from 9.31 lakh tonnes in the year-ago period. Similarly, import of crude sunflower oil declined to 1.28 lakh tonne from 1.57 lakh tonne, while that of crude soyabean oil fell to 1.49 lakh tonne from 2.29 lakh tonne in the said period.
As of December 1, edible oil stock was 29.60 lakh tonne, down by 1.79 lakh tonne from the previous month. India imports palm oil mainly from Indonesia and Malaysia, and a small quantity of crude soft oil, including soyabean oil from Argentina. Sunflower oil is imported from Ukraine and Russia.
