India's edible oils imports fell 22 per cent to 10,16,370 tonne in August, mainly due to surplus stock of higher shipments in June-July this year coupled with lower consumer demand because of skyrocketing retail prices of cooking oils, according to industry data.
Non-edible oil imports also fell to 37,440 tonne in August from 62,052 tonne in the same month last year, Solvent Extractors' Association of India (SEA) said in a statement.
Import of vegetable oils (edible and non-edible oils) during August 2021 stood at 10,53,810 tonne compared with 13,70,457 tonne in the same month last year, down 23 per cent.
When contacted, SEA Executive Director B V Mehta said: "Imports have fallen in August because of higher imports in June and July. The excess stock has been consumed. Moreover, demand has squeezed due to high prices of edible oils." During the first 10 months of 2020-21 oil marketing year ending October, edible oil imports fell to 103,86,517 tonne from 109,06,259 tonne in the corresponding period of the previous year. Non-edible oil imports rose to 3,21,929 tonne from 2,89,631 tonne.
The overall import of vegetable oils (comprising both edible and non-edible oils) during November 2020 to August 2021 stood at 107,08,446 tonne, down 4 per cent from 111,95,890 tonne in the corresponding period of the previous year.
Oil year runs from November to October.
SEA informed that the government has further reduced import duty on CPO (crude palm oil), RBD palmolein and RBD palm oil as well as crude and refined soybean and sunflower oil by 5.5 per cent with effect from September 11.
The effective import duty (including basic customs duty and other taxes) on crude palm oil, crude soyabean oil and crude sunflower oil has been reduced to 24.75 per cent from 30.25 per cent. The effective duty on refined palmolein, refined palm oil, refined soyabean oil and refined sunflower has been cut to 35.75 per cent from 41.25 per cent.
Out of total imports of 10,16,3670 tonne of edible oils during August this year, 187,471 tonne (18 per cent) were refined oils and 8,28,899 tonne (82 per cent) crude oils.
"Due to relaxation in policy for import of RBD palmolein, import of refined palm oil into India increased substantially in August and reported at 187,471 tonne and is likely to continue similar volume in coming months," SEA said.
During November 2020-August 2021, palm oil import increased to 63,65,163 tonne compared to 57,96,953 tonne during the corresponding period of the previous oil year. Soft oils import decreased to 40,21,354 tonne compared to 51,09,306 tonne due to high prices of soybean and sunflower oil.
India imported 12,000 tonne of rapeseed oil in August and more shipments are expected during the next 3 to 4 months to fill the shortage of mustard oil. SEA informed that the stock of edible oils as on September 1, 2021 at various ports is estimated at 6,00,000 tonne -- CPO 195,000 tonne, RBD Palmolein 75,000 tonne, degummed soybean oil 215,000 tonne, crude sunflower oil 110,000 tonne and rapeseed oil 5,000 tonne. Stock in pipeline is 11,50,000 tonne, taking the total stock at 17,50,000 tonne.
"The stock has slightly increased by 55,000 tonne to 17.5 lakh tonne as on 1st September, 2021 from 16.95 lakh tonne as on 1st August, 2021. However, stock is lower compared to 1st July, 2021," it added.
Indonesia and Malaysia are the major suppliers of crude palm oil to India.
During November 2020-August 2021 period, Malaysia was major supplier of CPO (30,15,246 tonne) followed by Indonesia (27,23,267 tonne).
In case of crude soybean degummed oil, India mainly imported from Argentina (20,35,603 tonne) followed by Brazil (3,13,089 tonne) while crude sunflower oil was mainly imported from Ukraine (12,49,078 tonne) followed by Russia (1,62,145 tonne) and Argentina (1,49,449 tonne).
India meets more than 60 per cent of its edible oils requirement through imports.
