Sub- Import of Vegetable Oils in India Nov.’22 – May ’23 – Up by 18%

Onset of monsoon in Kerala delayed by a week leading to delay in sowing and yet together momentum in most of the states. IMD has forecasted near normal monsoon, however El Nino is not ruled out completely and may spoil the chances of normal monsoon, which may impact kharif crop and domestic availability of vegetable oils in next oil year 2023-24.

The government announced sizable increases in the minimum support price (MSP) for kharif crops in the season 2023/24 on June 7. The increases of kharif oilseeds of Groundnut Rs.6377 per quintal from 5850, Sunfloweseed Rs.6760 (Rs.6400), Soybean (yellow) Rs. 4600 (Rs.4300), Sesamum Rs. 8635 (Rs.7830) and Nigerseed Rs. 7734 (Rs.7287). Currently Rapeseed is quoted at Rs. 5100 per quintal against MSP of Rs. 5450 per quintal. In Haryana, Sunflowerseed price fallen much below MSP of Rs. 6400 per quintal sparkling farmer protests.

Reduction in Import Duty of Refined Soybean and Sunflower :

Government of India vide Notification No.39/2023-Custom dated 15th June, 2023 reduced the import duty on Refined Soybean and Sunflower Oil from 17.5% to 12.5%. Now all major Crude Oils i.e. CPO, Sunflower Oil, Soybean Oil attract 5.0%. The effective duty for Crude Oils are 5.5% , while their Refined Oils attract 12.5% import duty plus Cess on Social Welfare at 10% on import duty, the effective duty is 13.75%. Currently there is no import of refined soybean and sunflower oil.

Basically Government wants to keep the price of edible oil under check. Even with lesser duty difference between crude and refined soya and sunflower oil, chances of shipment of refined soya and sunflower oil  may not be commercially viable but have some temporary sentiment impact on market.

The Import of Vegetable Oils (edible & non-edible) for the month of May, 2023 reported at 1,058,263  tons compared to 1,061,416 tons in May 2022,  consisting 1,053,265 tons of edible oils and 4,998 tons of non-edible oils i.e. marginally down by 0.30% The overall import of vegetable oils during first seven months of the oil year 2022-23, i.e. Nov’22.-May’ 23 is reported at 9,168,644 tons compared to 7,768,990 tons during the same period of last year i.e. up by 18%.

 Import of Vegetable Oil (Edible & Non-edible) Nov.’22 – May ’23, (Qty. in  MT)

Jumped in Soybean and Sunflower Oil Import in May 2023 :

India’s May 2023 import of vegetable oils is marginally up by 0.8% compared to April 2023. Palm Oil import down by 10% to 4.39 lakh tons from 5.10 lakh tons, however Soybean oil import is up by 21% to 3.19 lakh tons from 2.62 lakh tons and Sunflower oil is import jumped by 18% to 2.95 lakh tons from 2.49 lakh tons.

Domestic Stock :

The Stock of edible oils as on 1st June.,2023 at various ports is estimated at 738,000 tons (CPO 193,000 tons, RBD Palmolein 123,000 tons, Degummed Soybean Oil 154,000 tons and Crude Sunflower Oil 268,000 tons) and pipeline stock  considering domestic production and consumption reported at 2,203,000 tons, The total stock  as on 1st June, 2023 reduced to 2,941,000 tons due to lower import during May 2023.

Current Stock Position at Ports & Pipelines: (Qty. in ‘000 M.T.)

Import of Refined Oil Rising :-

Import of RBD Palmolein is rising fast. The overall refined oils (RBD Palmolein) reached at 13% which was 5% in 2020-21 and 3% in 2019-20 only.

Import of Refined & Crude Edible Oils (Ratio) Nov.’22 – May.’23, (Qty. in MT)

Sharp increased of Palm Oil Import :-

During Nov.’22 to May ’23, import of palm products sharply increased due to price parity and reported at 5,348,396 tons compared to  3,739,783  tons of same period of last year. The share of palm oil increased to 59% from 50% while soft oils import reduced. However in last two months, shipment of sunflower and soybean oils sharply increased and reported for first seven months of the current oil year at 3,706,906 tons compared to 3,808,767 tons last year.  The share of soft oils reduced to 41% from 50%.  

Import of Palm Oil & Soft Oil (Ratio) Nov,’22 – May ’23 (Qty. in MT)   

Country-wise Import of Palm & Soft Oil:

Indonesia and Malaysia are the major suppliers of RBD Palmolein and Crude Palm Oil to India. During Nov.’22-May ’23, Indonesia was the major supplier and accounted for 1,799,287 tons of CPO (44%) and 935,207 tons of  RBD Palmolein (79%) followed by Malaysia of 1,462,764 tons of CPO (36%) and 223,392 tons RBD Palmolein (19%) and Thailand of 661,345 tons of CPO (16%) and 11,499 tons of RBD Palmolein (1%). In the case of Crude Soybean Degummed Oil; India imported 1,151,097 tons from Argentina (56%) followed by 807,353 tons from Brazil (39%) while for Crude Sunflower Oil Russia supplied 444,717 tons (27%) followed by 391,064 tons from Ukraine (24%) and 193,835 tons from Argentina.

Country-wise Import of Edible Oils Nov.’22 – May ’23 (Qty. in MT)

Average Prices and Rupee appreciation : (Price in US$/CIF Indian Port/Ton)

Import of Non-edible Oils :

P.F.A.D., RBD Palm Sterain and P.K.F.A.D are the major non-edible oils being imported by the Soap and Oleo-chemical industry. Import of Non-edible oils during Nov.’22–May ’23 is reported at 113,343 tons compared to 220,440  tons during the same period of last year i.e. down by 49%.