The Import of Vegetable Oils (edible & non-edible) for the month of August, 2023 reported at 1,866,123 tons compared to 1,401,233 tons in August 2022, consisting 1,852,115 tons of edible oils and 14,008 tons of non-edible oils i.e. up by 33%. The overall import of vegetable oils during first ten months of the oil year 2022-23, i.e. Nov’22.-Aug.’ 23 is reported at 14,121,076 tons compared to 11,376,226 tons during the same period of last year i.e. up by 24%.

Looking to import of edible oils in first ten months at 141.21 lakh tons, will not be surprised to see record import of over 160 to 165 lakh tons during current oil year ending Oct.’23. Earlier India’s highest import was 151 lakh tons in 2016-17.

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

Month 2022-23 2021-22 %
Change
Edible Non-edible Total Edible Non-edible Total
Nov.’22 1,528,760 16,780 1,545,540 1,138,823 34,924 1,173,747 (+) 32%
Dec.’22 1,555,780 10,349 1,566,129 1,216,863 9,823 1,226,686 (+) 28%
Jan.’23 1,661,750 -- 1,661,750 1,251,926 18,802 1,270,728 (+) 31%
Feb.’23 1,098,475 16,006 1,114,481 983,608 36,389 1,019,997 (+)  9%
Mar.’23 1,135,600 36,693 1,172,293 1,051,698 52,872 1,104,570 (+)  6%
Apr.’23 1,021,672 28,517 1,050,189 900,085 11,761 911,846 (+) 15%
May ‘23 1,053,265 4,998 1,058,263 1,005,547 55,869 1,061,416 (-) 0.30%
June’23 1,311,576 2,900 1,314,476 941,471 50,179 991,650 (+) 32%
July’23 1,755,834 15,999 1,771,833 1,205,284 9,069 1,214,353 (+) 46%
Aug.’23 1,852,115 14,008 1,866,123 1,375,002 26,231 1,401,233 (+) 33%
Total 13,974,826 146,250 14,121,076 11,070,307 305,919 11,376,226 (+) 24%

Deficit August Rainfall – A Cause of  Worry :

The country received historically low rain-fall in August created anxiousness among farmers, trade and industry. Fortunately, in last one week, monsoon rains have brought some relief to standing soybean crop in Madhya Pradesh and certain part of Maharashtra growing soybean. Groundnut crop in Gujarat with deficit rain still facing threat of reduction in yield.

August 2023 Witnessed a Surge in Edible Oil Import :

Despite ample domestic availability, a sharp drop in domestic edible oil prices has reignited demand, as reflected in the August data. Crude palm oil imports rebounded, regaining competitiveness against soybean and other oils, totaling 8.24 lakh tons in August ’23, slightly down from 8.41 lakh tons in July ’23. Meanwhile, RBD Palmolien imports spiked from 2.17 lakh tons in July ’23 to 2.83 lakh tons in August ’23. In total, palm product imports reached 11.28 lakh tons in August ’23, up from 10.86 lakh tons in July ’23. Additionally, Soybean Oil imports rose to 3.58 lakh tons compared to 3.42 lakh tons in the previous month, while Sunflower Oil imports increased to 3.66 lakh tons, surpassing the 3.27 lakh tons reported in the previous month. This influx of imports is driven by the current low 5.5% duty on Crude Palm Oil, Soybean Oil, and Sunflower Oil, transforming India into a prime destination for excess oil supplies.

Domestic Stock :

The domestic import has shoot up the stock at port and pipeline. The Stock of edible oils as on 1st Sept.,2023 at various ports is provisionally estimated at 1,464,000 tons (CPO 553,000 tons, RBD Palmolein 232,000 tons, Degummed Soybean Oil 383,000 tons and Crude Sunflower Oil 296,000 tons) and pipeline stock  considering domestic production and consumption reported at 2,271,000 tons, The total stock  as on 1st Sept, 2023 reported at 3,735,000 tons compared to 3,285,000 tons as on 1st August, 2023.

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

  1st
Sept.
2023
1st
Aug.
2023
1st
July
2023
1st
June
2023
1st
May
2023
1st
Apr.
2023
1st
Mar.
2023
1st
Feb.
2023
1st
Jan.
2023
1st
Dec.
2022
1st
Nov.
2022
1st
Oct.
2022
1st
Sept.
2022
Port Stock 1464 949 858 738 736 978 1050 1261 1042 800 647 729 611
Pipelines 2271 2336 2082 2203 2509 2469 2375 2152 1959 1868 1808 1852 1755
Total Stock 3735 3285 2940 2941 3245 3447 3425 3413 3001 2668 2455 2581 2366

Import of Refined Oil Rising :-

Import of RBD Palmolein is rising fast. The overall refined oils (RBD Palmolein) reached at 14% (19.24 lakh tons) which was 5% (6.86 lakh tons) in 2020-21 and 3% (4.21 lakh tons) in 2019-20 only. This is seriously affecting working of domestic palm oil refining industry. The import of crude oil is also rising in last three month and reported at 120.50 lakh tons compared to 97.24 lakh tons in previous year.

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

Year (Nov.-Oct) Refined Oils % Crude Oils % Total
Nov., 2022 202,248 13% 1,326,512 87% 1,528,760
Dec., 2022 256,398 16% 1,299,382 84% 1,555,780
Jan.,2023 173,754 10% 1,487,996 90% 1,661,750
Feb.,2023 187,236 17% 911,239 83% 1,098,475
Mar.,2023 169,462 15% 966,138 85% 1,135,600
Apr.,2023 112,248 11% 909,424 89% 1,021,672
May ,2023 85,205 8% 968,060 92% 1,053,265
June, 2023 217,029 17% 1,094,547 83% 1,311,576
July, 2023 237,379 14% 1,518,455 86% 1,755,834
Aug.,2023 283,234 15% 1,568,881 85% 1,852,115
Nov.’22 – Aug. ’23
Nov.’21 – Aug. ’22
1,924,194
1,346,669
14%
12%
12,050,632
 9,723,638
86%
88%
13,974,826
11,070,307
2021-22 1,840,540 13% 12,189,300 87% 14,029,840
2020-21 686,340 5% 12,445,171 95% 13,131,511
2019-20 421,340 3% 12,754,106 97% 13,175,446
2018-19 2,730,881 18% 12,182,526 82% 14,913,407

Sharp increased in Palm Oil Import :-

During Nov.’22 to Aug. ’23, import of palm products  increased sharply due to price parity and reported at 8,246,189 tons compared to  5,856,119 tons of same period of last year. The share of palm oil increased to 59% from 53%, also soft oils import increased marginally. In last five months, shipment of sunflower and soybean oils sharply increased and overall import during  first ten months of the current oil year at 5,728,637 tons compared to 5,214,188 tons last year.  The share of soft oils reduced to 41% from 47%.

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

Year
(Nov-Oct)
Palm Oil Soft Oil  % Total
(RBD Palmolein + CPO
+ Crude Olein + CPKO)
Soybean Sunflower Rape Others Total
 Nov.,2022 1,141,678 75% 229,373 157,709 --- --- 387,082 25% 1,528,760
Dec., 2022 1,109,246 71% 252,525 194,009 --- --- 446,534 29% 1,555,780
Jan.,2023 833,667 50% 366,625 461,458 --- --- 828,083 50% 1,661,750
Feb.,2023 586,007 53% 355,840 156,628 --- --- 512,468 47% 1,098,475
Mar.,2023 728,530 64% 258,925 148,145 --- --- 407,070 36% 1,135,600
Apr.,2023 510,094 50% 262,455 249,122 --- --- 511,577 50% 1,021,672
May 2023 439,173 42% 318,887 295,206 --- --- 614,093 58% 1,053,265
June 2023 683,133 52% 437,658 190,785 --- --- 628,443 48% 1,311,576
July, 2023 1,086,305 62% 342,270 327,259 --- --- 669,529 38% 1,755,834
Aug.,2023 1,128,355 61% 357,890 365,870 --- --- 723,760 39% 1,852,115
Nov.’22-Aug. ’23
Nov.’21-Aug. ’22
8,246,189
5,856,119
59%
53%
3,182,447
3,575,253
2,546,190
1,638,935
---
---
---
---
5,728,637
5,214,188
41%
47%
13,974,826
11,070,307
2021-22 7,914,626 56% 4,171,535 1,943,679 --- --- 6,115,214 44% 14,029,840
2020-21 8,320,537 63% 2,865,619 1,893,578 51,777 --- 4,810,974 37% 13,131,511
2019-20 7,217,357 55% 3,384,054 2,518,999 55,036 -- 5,958,089 45% 13,175,446
2018-19 9,409,248 63% 3,094,113 2,350,875 59,171 -- 5,504,159 37% 14,913,407

Indonesia and Malaysia are major Suppliers of Palm Products  to India :

Indonesia and Malaysia are the major suppliers of RBD Palmolein and Crude Palm Oil to India. During Nov.’22-Aug.’23, Indonesia was the major supplier and accounted for 3,127,971 tons of CPO (50%) and 1,593,722 tons of  RBD Palmolein (83%) followed by Malaysia of 2,149,333 tons of CPO (34%) and 297,519 tons RBD Palmolein (15%). Thailand is emerging as a regular supplier of crude palm oil to India and supplied 671,345 tons of CPO (11%) and 11,499 tons of RBD Palmolein (1%). In the case of Crude Soybean Degummed Oil; India imported 1,688,039 tons from Argentina (53%) while Brazil is emerging supplier of soybean oil to India and supplied  1,213,612 tons (38%) while for Crude Sunflower Oil, Russia is the leading supplier and supplied 821,763 tons (32%) followed by 487,304 tons from Ukraine (19%) and 357,852 tons from Argentina (14%).

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

Country RBD
Palmolein
Crude
Palm Oil
Crude Palm
Kernel Oil
Crude
Soybean Oil
Crude Sunflower Oil Crude
Rapeseed Oil
Total
Indonesia 1,593,722 3,127,971 6,100 17,462 8,217 -- 4,753,472
Malaysia 297,519 2,149,333 55,092 --- -- -- 2,501,945
Thailand 11,499 671,345 19,006 56,508 -- -- 758,358
Argentina -- -- -- 1,688,039 357,852 -- 2,045,891
Brazil -- -- -- 1,213,612 12,000 -- 1,225,612
Ukraine -- -- -- --- 487,304 -- 487,304
Russia 12,000 -- -- 121,801 821,763 -- 955,564
Others 9,454 292,398 750 85,025 859,054 -- 1,246,680
Total 1,924,194 6,241,047 80,948 3,182,447 2,546,190 -- 13,974,826
Nov’21-Aug. ’22 1,346,669 4,442,323 67,127 3,575,253 1,638,935 -- 11,070,307

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

Oils Aug.
2023
July
2023
June
2023
May
2023
Apr
2023
Mar
2023
Feb
2023
Jan
2023
Dec
2022
Nov
2022
Oct
2022
Sept
2022
Aug
2022
RBD Palmolein 894 917 849 915 1025 1006 1002 982 995 1028 947 942 1079
Crude Palm Oil 924 945 875 938 1039 1024 1015 997 997 1024 938 946 1103
Crude  Soybean Oil 1056 1086 1036 999 1049 1155 1274 1285 1326 1461 1362 1296 1447
Crude Sunflower Oil 1005 1000 914 957 1036 1108 1224 1295 1322 1445 1411 1329 1571
Crude Rapeseed Oil 1078 1057 952 985 1042 1155 1316 1384 1418 N.A. N.A. N.A. N.A.
FE: 1US$  =(Average) 82.81 82.16 82.22 82.30 81.97 82.26 82.60 81.74 82.47 81.68 82.29 80.25 79.50

 

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