FNB News - “Edible and non-edible veg oil import in June ’17 up by 15%,” says SEA

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OILS AND FATS

“Edible and non-edible veg oil import in June ’17 up by 15%,” says SEA

Saturday, 15 July, 2017, 08 : 00 AM [IST]

Our Bureau, Mumbai

The Solvent Extractors’ Association of India (SEA) has compiled the import data of edible and non-edible vegetable oils for the month of June 2017. Import of vegetable oils during June 2017 was reported to be 1,344,868 ton vis-a-vis 1,169,456 ton in June 2016 (i e up by 15 per cent).

This consisted of 1,293,777 ton of edible oils and 51,091 ton of non-edible oils. The overall import of vegetable oils during the first eight months of the current oil year 2016-17 (i e between November 2016 and June 2017) was reported to be 9,863,572 ton vis-a-vis 9,763,043 ton.

Import of vegetable oil (Edible and non-edible) between November 2016 and June 2017

(Quantity in million ton)

Month	2016-17			2015-16			%
Month	Edible	Non-edible	Total	Edible	Non-edible	Total	%
November 2016	11,55,863	19,601	11,75,464	13,32,936	4,499	13,37,435	(-) 12%
December2016	11,74,296	35,389	12,09,685	14,09,435	11,467	14,20,902	(-) 15%
January 2017	10,08,085	16,774	10,24,859	12,55,054	3,000	12,58,054	(-) 19%
February 2017	12,34,255	36,188	12,70,443	10,96,424	16,492	11,12,916	(+) 14%
March 2017	10,97,876	16,449	11,14,325	11,76,312	14,203	11,90,515	(-) 6%
April 2017	13,24,014	15,475	13,39,489	12,36,068	12,819	12,48,887	(+) 7%
May 1, 2017	13,23,792	60,647	13,84,439	10,04,685	20,193	10,24,878	(+) 35%
June 1, 2017	12,93,777	51,091	13,44,868	11,58,902	10,554	11,69,456	(+) 15%
Total	96,11,958	2,51,614	98,63,572	96,69,816	93,227	97,63,043	(+) 1%

Current situation
Currently, soybean, rapeseed and groundnut are being sold below the minimum support price (MSP) and prices have dropped between 20 and 30 per cent of the last year’s level. The current prices are the lowest in the last five years.

Farmers are totally discouraged from sowing oilseeds, and may switch over to cotton and other cash crops.

With a view to ensure that farmers do not lose interest in oilseed cultivation, SEA has strongly suggested to the Centre that the import duty on crude oil be raised to 20 per cent and that on refined oil to 35 per cent with immediate effect.

Stock position at port and in pipeline
The stock of edible oils as on July 1, 2017 at various ports was estimated to be 738,000 tons. This includes 2,70,000 ton of crude palm oil (CPO), 1,50,000 ton of RBD palmolein, 1,60,000 ton of degummed soybean oil, 1,40,000 ton of crude sunflower oil and 18,000 ton of rapeseed (canola) oil. There are about 1,540,000 ton in pipelines.

The total stock at ports and in pipelines increased to 22,78,000 ton from 21,60,000 ton in June 2017.

India’s monthly requirement is about 17.50 lakh ton, and operate at 30 days’ stock, against which the current holding stock is over 22.78 lakh ton equal to 39 days’ requirements.

Stock position at ports and pipelines

(Quantity in ’000 million ton)

	July 1, 2017	June 1, 2017	May 1, 2017	April 1, 2017	March 1, 2017	February 1, 2017	January 1, 2017	December 1, 2016	November 1, 2016	October 1, 2016	September 1, 2016	August 1, 2016	July 1, 2016
Port stock	738	770	785	688	775	642	695	655	705	860	755	770	878
Pipelines	1,540	1,390	1,335	1,225	1,190	1,088	1,150	1,170	1,230	1,230	1,300	1,380	1,442
Total stock	2,278	2,160	2,120	1,913	1,965	1,730	1,845	1,825	1,935	2,090	2,055	2,150	2,320

Import of refined and crude oil ratio
Between November 2016 and June 2017, import of refined oil (RBD palmolein) has sharply increased to 19,03,056 ton from 17,77,839 ton in the same period of last year, while the import of crude oil decreased to 77,08,902 ton from 78,92,977 ton during the same period of last year.

Import of refined and crude edible oils (ratio) between November 2016 and June 2017

(Quantity in million ton)

Year (November-October)	Refined oils	Percentage	Crude oils	Percentage	Total
November 2016	2,40,948	21%	9,14,915	79%	11,55,863
December 2016	2,45,554	21%	9,28,742	79%	11,74,296
January 2017	1,96,623	20%	8,11,462	80%	10,08,085
February 2017	2,33,313	19%	10,00,942	81%	12,34,255
March 2017	2,19,270	20%	8,78,606	80%	10,97,876
April 2017	2,32,243	18%	10,91,771	82%	13,24,014
May 2017	2,94,409	22%	10,29,383	78%	13,23,792
June 2017	2,40,696	19%	10,53,081	81%	1,29,37,777
(November 2016-April 2017) (November 2015-April 2016)	19,03,056 17,76,839	20% 18%	77,08,902 78,92,977	80% 82%	96,11,958 96,69,816
2015-16	26,23,002	18%	1,19,48,336	82%	1,45,71,338
2014-15	16,59,070	12%	1,27,62,201	88%	1,44,21,271
2013-14	15,76,354	14%	1,00,41,980	86%	1,16,18,334

Import of palm and soft oil ratio
Between November 2016 and June 2017, palm oil import has increased to 59,21,563 ton from 56,05,473 ton during the same period of last year. The overall share of palm oil products increased to 62 per cent from 58 per cent, thanks to the larger import of RBD palmolein. Soft oil imports reduced to 36,90,395 ton from 40,64,343 ton last year. However, within soft oils, the import of sunflower oil has sharply increased at the cost of soybean oil.

Import of palm oil and soft oil (ratio) between November 2016 and June 2017

(Quantity in million ton)

Year (November-October)	Palm oil		Soft oil					Percentage	Total
	(RBD palmolein + CPO + crude olein + CPKO)		Soybean	Sunflower	Rape	Safflower	Total	Percentage	Total
November 2016	8,01,311	69%	1,64,286	1,58,071	32,195	-	3,54,552	31%	11,55,863
December 2016	7,23,158	62%	2,32,132	1,85,824	33,182	-	4,51,138	38%	11,74,296
January 2017	6,08,762	60%	1,66,573	2,14,872	17,878	-	3,99,323	40%	10,08,085
February 2017	7,36,207	60%	2,51,740	2,09,422	36,886	6,090	4,98,048	40%	12,34,255
March 2017	6,80,065	62%	2,29,853	1,81,868	-	-	4,17,811	38%	10,97,876
April 2017	7,52,632	57%	3,04,942	2,34,516	31,924	6,090	5,71,382	43%	13,24,014
May 2017	7,99,346	60%	3,40,365	1,54,938	29,143	-	5,24,446	40%	13,23,792
June 2017	8,20,082	63%	2,90,904	1,69,345	13,446	-	4,73,695	37%	12,93,777
November 2016-June 2017 November 2015-June 2016	59,21,563 56,05,473	62% 58%	19,80,795 28,05,254	15,08,856 10,68,887	1,94,654 1,90,202	6,090 -	36,90,395 40,64,343	38% 42%	96,11,958 96,69,816
2015-16	84,42,840	58%	42,34,809	15,16,220	3,77,469	-	61,28,498	42%	1,45,71,338
2014-15	95,36,904	66%	29,85,944	15,42,599	3,55,824	-	48,84,367	34%	1,44,21,271
2013-14	79,57,960	68%	19,51,233	15,09,250	1,99,891	-	36,60,374	32%	1,16,18,334

Average prices and rupee depreciation
From April 2016 onwards, the landed price of RBD palmolein has either remained the same as or lower than that of CPO, encouraging larger import of RBD palmolein at the cost of CPO. The spread between palm oil and soft oil reduced encouraging a larger import of soft oils. Importers continue to make larger import purchases of sunflower oil, taking advantage of the attractive price vis-à-vis soy oil. Also, the strengthening of the rupee in the last six months supported the import of vegetable oils.

(Price in $/CIF Indian port/ton)

Oils	June 2017	May 2017	April 2017	March 2017	February 2017	January 2017	December 2016	November 2016	October 2016	September 2016	August 2016	July 2016	June 2016
RBD palmolein	700	727	705	731	773	788	773	729	709	759	735	643	669
Crude palm oil	697	725	706	734	783	794	772	729	704	753	730	642	669
Crude soybean oil	798	796	756	767	812	857	887	844	827	803	804	751	768
Crude sunflower oil	789	798	783	791	814	824	836	826	834	843	845	848	867
FE: $1 = (Average)	64.45	64.42	64.53	65.8	66.97	68.04	67.8	67.64	66.74	66.71	66.9	67.15	67.27

Import of non-edible oils: Sharp rise in RBD palm stearin
The import of non-edible oils between November 2016 and June 2017 is reported at 2,51,614 ton compared to 93,227 ton during the same period last year. PFAD, PKFAD, CPS and RBD palm stearin were the major import of non-edible oils.