As per the data complied by Solvent Extractors' Association of India import of vegetable oils during July 2017 is reported at 1,524,724 tons compared to 1,140,685 tons in July 2016 i.e. up by 34%, consisting of 1,489,137 tons of edible oils and 35,587 tons of non-edible oils. The overall import of vegetable oils during first nine months of current oil year 2016-17, Nov.'16 to July '17 is reported at 11,388,296 tons compared to 10,903,728 tons last year i.e. up by 4%.
Current Situation : Currently, Soybean, Rapeseed & Groundnut being sold below MSP and prices have dropped between 20% to 30% below last year level. The current prices is the lowest in the last five years and farmers are totally discouraged to sow the oilseeds and reflected in switching over from oilseeds cultivation to other crops. The area under oilseeds reduced by over 17.0 lakh hectre in current kharif season and reported at 154.29 lakh hectre against 171.15 lakh hectre last year. With a view to ensure farmers do not loose interest in oilseeds cultivation and receive remunerative price for his produce during harvesting, Indian Government raised the import duty on Crude Palm Oil to 15% from 7.5%, Degummed Soybean Oil to 17.5% from 12.5% and RBD Palmolein to 25% from 15% w.e.f. 11th August, 2017.
Stock Position at Port & in Pipeline :- The stock of edible oils as on 1st August, 2017 at various ports is estimated at 883,000 tons (CPO 270,000 tons, RBD Palmolein 140,000 tons, Degummed Soybean Oil 300,000 tons, Crude Sunflower Oil 170,000 tons and 3,000 tons of Rapeseed (Canola) Oil) and about 1,590,000 tons in pipelines. Total stock at ports and in pipelines increased to 2,473,000 tons from 2,278,000 tons in July, 2017. India's monthly requirement is about 17.50 lakh tons and operate at 30 days stock against which currently holding stock over 24.73 lakh tons equal to 42 days requirements.
Import of Refined & Crude Oil Ratio:- During Nov.'16 - July '17, Import of refined oil (RBD Palmolein) has sharply increased to 2,197,455 tons from 1,984,069 tons in the same period of last year, Also Import of crude oil increased to 8,903,640 tons from 8,803,813 tons during the same period of last year.
Import of Palm & Soft Oil Ratio:- During Nov.'16 - July '17, Palm Oil import has increased to 6,741,678 tons from 6,175,524 tons during the same period of last year, overall share of palm oil products increased to 61% from 57%, thanks to larger import of RBD Palmolein. Soft Oils import reduced to 4,359,417 tons from 4,612,358 tons last year, however, within soft oils, import of sunflower oil has sharply increased at the cost of soybean oil.
Average Prices and Rupee depreciation :- Since April'16 and onwards landed price of RBD Palmolein has remained same or lower than CPO, encouraging larger import of RBD Palmolein at the cost of CPO. The spread between palm oil and soft oil reduced encouraging larger import of soft oils. Importers continues to make larger import purchases of Sunflower oil, taking advantage of attractive price vis-vis Soya oil. Also, strengthening of rupee in the last 6 months supported the import of vegetable oils.
Import of Non-edible Oils - Sharp rise in RBD Palm Stearin :- Import of Non-edible oils during Nov..16 - July '17 is reported at 287,201 tons compared to 115,846 tons during the same period last year. P.F.A.D., P.K.F.A.D., C.P.S. & RBD Palm Stearin are the major import of non-edible oils.
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