1st Quarter Nov.’20 – Jan.’21 – Up by 3%
Import of CPO jumped in 1st quarter due to duty advantage
The Solvent Extractors’ Association of India has compiled the Import data of Vegetable Oils (edible & non-edible) for the month of January, 2021. Import of vegetable oils during January 2021 is reported at 1,096,669 tons compared to 1,195,812 tons in January, 2020, consisting 1,074,635 tons of edible oils and 22,034 tons of non-edible oils i.e. down by 8%. The overall import of vegetable oils during November 2020 to January 2021 is reported at 3,556,153 tons compared to 3,451,313 tons i.e. up by 3%.
Import of Crude Palm Oil jumped in first quarter, due to duty reduction from 37.5% to 27.5% w.e.f. 27th Nov.,2020 by Indian Government, resulted in to 24% higher import by India during first quarter of 2021-22. Import of Soybean oil in January 2021 was lowest as truckers strikes in Argentina seriously affected loading during Nov.,2020 resulted lesser vessels of soybean oil arrival in India during Jan.,2021.
However, in last Union Budget presented on 1st Feb.,2021 by Indian Government restructured its vegetable oil import policy. The basic import duty on crude palm oil was lowered by 12.5 points to 15% but this was more than offset by a newly introduced 17.5% of Agriculture Infrastructure and Development Cess which is earmarked to improve agriculture infrastructure. Taken together, the total import duty on crude palm oil increased from 30.25 to 35.75%. Soya oil and Sunflower oil imports are now subject to a 20% cess but the basic duty decreased from 35 to 15%, keeping the effective tariff unchanged at 38.5%. The duty advantage of CPO thus narrowed from 8.25 to 2.75 percentage points.
Stock Position at Port & in Pipeline :-
The stock of edible oils as on 1st February 2021 at various ports has estimated at 657,000 tons (CPO 358,000 tons, RBD Palmolein 5,000, Degummed Soybean Oil 118,000 tons and Crude Sunflower Oil 176,000) and pipeline 1,130,000 tons, total stock at 1,787,000 tons. The stock has marginally decreased by 28,000 tons to 17.87 lakh tons as on 1st Feb.,2021 from 18.15 lakh tons as on 1st January, 2021.
Import of Refined & Crude Oil Ratio:-
During Nov.’20 – Jan.’21, a small parcel of 15,601 tons of refined oil (RBD Palmolein) being imported. RBD Palmolein has been placed under restricted list and allowed import subject to license w.e.f. 8th January, 2020 as such, there is hardly import of RBD Palmolein and particularly India is now importing crude edible oils only. In view of this, import of crude oil increased to 3,470,524 tons (99.5%) compared to 3,098,068 tons (90%) in Nov’19.-Jan.’20.
Import of CPO up due to duty advantage :-
During Nov.’20-Jan.’21, Palm Oil import has increased to 2,169,601 tons compared to 2,008,657 tons during Nov’19.- Jan.’20 due to duty advantage. Soft Oil import has marginally decreased to 1,316,524 tons compared to 1,356,270 tons during Nov.’19-Jan.’20 due to lower import of sunflower oil.
Country-wise Import of Palm & Soft Oil :- Nov.’20 – Jan.‘21
Indonesia and Malaysia are the major suppliers of Palm Oil to India. During Nov’20.-Jan.’21, Malaysia was major supplier of CPO (1,233,517 tons) followed by Indonesia (851,627 tons). In case of Crude Soybean Degummed Oil, India mainly imported from Argentina (640,225 tons), while Crude Sunflower Oil mainly imported from Ukraine (545,591 tons) followed by Russia (82,673 tons). Country-wise details are given in attached statement.