Awaiting a decision on import duty reduction from the Centre later this month, India slowed down imports of vegetable oils in November.

Latest data shared by the Solvent Extractors’ Association of India (SEA) revealed that vegetable oils imports during November 2018 stood at 1,133,893 tonnes as against 1,248,810 tonnes in November 2017 — down by 9 per cent on a year-on-year basis.

“In anticipation of a likely reduction of import duty by the Centre on palm oil by December 31, 2018, shipment has slowed down for the time-being, which is likely to pick up from January 2019 and onward. Also palm oil prices are at a historical low of last 10 years and the spread between palm and soft oil has increased, which has made palm oil more attractive to import by India,” said SEA in a statement issued on Thursday.

Currently, under the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA), India has imposed highest import duty on CPO at 44 per cent and RPO 54 per cent applicable since June 14, which is to be brought down by up to 9 per cent by the end of this month.

During November 2018, refined oil (RBD Palmolein) imports fell to 108,911 tonnes from 147,362 tonnes in November 2017. Import of crude palm oil decreased to 964,442 tonnes from 1,077,953 tonnes in same period last year. Palm oil imports stood at 691,827 tonnes as against 716,968 tonnes for the same month last year.

Import of soft oils including soyabean oil, sunflower oil, rapeseed oils, too, decreased to 381,526 tonnes from 508,347 tonnes in November 2017.

SEA noted that the prices of edible oils in the international markets have fallen during the last one year in the range of 15-30 per cent due to rising supplies in the world market.