Import of edible oils witnessed a 27.30 per cent growth in the first four months of the oil year 2022-23 (November to October) following the increase in the import of RBD palmolein and sunflower oils.

But shipments into the country declined 33 per cent in February compared with January to 10.98 lakh tonnes as palm oil imports dropped 30 per cent.

Data available from the Solvent Extractors’ Association (SEA) of India showed that India imported 58.44 lakh tonnes (lt) of edible oil during November to February of the oil year 2022-23 against 45.91 lt in the corresponding period of the previous oil year, recording a growth of 27.30 per cent.

BV Mehta, Executive Director of SEA of India, said there was a sharp increase in the import of RBD palmolein in the first four months of the current oil year 2022-23. India imported 8.20 lt of RBD palmolein in 2022-23 against 5.19 lt in the corresponding period of the previous oil year, recording a growth of 58 per cent.

He said the import of 8.20 lt of RBD palmolein is nearly 22.5 per cent of total the palm oil import. This is depriving the domestic industry of capacity utilisation. India’s palm refining industry is heavily suffering from very low capacity utilisation due to excessive import of RBD palmolein and getting transformed into mere packers, he said.

He suggested that the Government increase the duty difference between CPO (crude palm oil) and refined palmolein/ palm oil from the current 7.5 per cent to at least 15 per cent by imposing an additional 7.5 per cent agriculture cess on RBD palmolein.

Stating that the current MSP (minimum support price) for the mustard is ₹5,450 a quintal, he said mustard is being sold at least ₹300-400 a kg below MSP in various mandis.

There is an urgent need is to start procurement of mustard seed at MSP by NAFED in all major mandis, and raise the effective duty on RBD palmolein as above to bring up overall price level and to further support the market, he said.

Import of CPO stood at 50.25 lt in the first four months of the oil year 2022-23 against 40.71 in the corresponding period of the previous oil year, recording a growth of 23.43 per cent.

Soft oils drop

Import of soft oils decreased to 21.74 lt during the first four months of the oil year 2022-23 against 24.77 lt in the corresponding period of the previous oil year, recording a decline of 12.23 per cent. India imported 12.04 lt of soyabean oil during November-February of 2022-23 (16.34 lt in Nov-Feb of 2021-22), and 9.69 lt of sunflower oil during November-February of 2022-23 (8.43 lt).

He said the import of palm products increased during November to February, 2022-23 due to price parity. The share of palm oil increased to 63 per cent from 46 per cent, while soft oils import reduced to 37 per cent from 54 per cent.

The stock of edible oils at various ports was estimated at 10.50 lt and pipeline stock at 23.75 lt, which is a total of 34.25 lt, as on March 1 2023. The total stock was at 34.13 in February.

February import down

The import of edible oils declined from 16.61 lt in January 2023 to 10.98 lt in February 2023. Apart from the drop in palm oil, import of soyabean was down by 3 per cent and sunflower oil by 66 per cent.

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