The import of edible oils declined by 6.37 per cent in June compared with May, whereas total imports in the first eight months of the current oil year to October increased marginally by 0.44 per cent.
Data made available by the Solvent Extractors’ Association of India (SEA) showed that India imported 9.41 lakh tonnes (lt) of edible oil in June against 10.05 lt in May. However, the edible oil imports increased to 84.90 lt during the first eight months of the oil year 2021-22 against 84.52 lt in the same period a year ago.
Palm oil
The import of palm oil (including crude palm oil and RBD palmolein) increased to 5.90 lt in June against 5.14 lt in May, recording a growth of 14.96 per cent. However, the total import of palm oil during the first eight months of the oil year 2021-22 decreased to 43.30 lt against 51.49 lt in the corresponding period a year ago, down by 15.89 per cent.
Import of RBD palmolein and crude palm oil (CPO) stood at 11 lt and 3.17 lt in the first eight months of the oil year, respectively, against 29,376 tonnes and 5.01 lt, respectively, a year ago.
BV Mehta, Executive Director of SEA, said the import of RBD palmolein jumped mainly as high export levy on CPO ($575 a tonne) and lower duty on RBD palmolein ($408 a tonne) favoured Indonesian exporters to discount RBD palmolein to push RBD palmolein export.
Indonesia and Malaysia are the major suppliers of palm oil to India. During the first eight months, Malaysia supplied 19.99 lt of CPO and 3.44 lt of RBD palmolein. Indonesia exported 6.43 lt of CPO and of 7.47 lt of RBD palmolein to India.
Indonesia exports plummet
Highlighting the recent developments in the palm oil sector and their impact in the market, Mehta said Indonesian palm oil exports plummeted to a 10-year low due to restriction imposed by the Indonesian government on April 28. This resulted in very high stock in that country.
Quoting market reports, he said the stock is over 8.5 million tonnes (mt) in Indonesia. That country was compelled to lift the ban on May 23 to reduce the overburdened stock. Export tax and levy were also reduced to $488 a tonne from $575 a tonne, and are expected to reduce further to stimulate export.
This has increased export from Indonesia which has dampening effect on price in the world market. This can be seen in continuous downfall in last few weeks in palm oil prices in international market.
The CIF price of palm oil decreased to $1,519 a tonne in June against $1,769 a tonne in May.
Soft oils
Meanwhile, the import of soyabean oil decreased to 2.30 lt in June (3.73 lt in May), and sunflower oil witnessed a marginal increase to 1.19 lt in June (1.18 lt in May).
However, the total import of soyabean oil increased to 28.10 lt during the first eight months of the oil year 2021-22 as against 18.50 lt in the corresponding period of 2020-21. The total import of sunflower oil decreased to 13.48 lt during the first eight months of the oil year 2021-22 against 14.52 lt in the corresponding period of 2020-21.
The CIF price of crude soyabean oil decreased to $1,686 a tonne in June against $1,889 a tonne in May, and that of crude sunflower oil declined to $1,941 a tonne in June against $2134 a tonne in May.
India imported 17.24 lt of crude soyabean degummed oil from Argentina, 7.20 lt from Brazil, and 1.59 lt from the US. It imported 8.42 lt of crude sunflower oil from Ukraine (before March). This was followed by 3.01 lt from Russia, and 1.80 lt from Argentina.
Mehta said the Indian government announced the allocation of tariff rate quota (TRQ) on import of crude soyabean oil and sunflower oil and licences have been issued for TRQ at nil import duty.