As per Solvent Extractors Association (SEA) in September 2017, the palm oil imports of the country increased by 20.44% and reached 9, 31,637 tonnes. Over other oils, the palm oil has a price advantage. Last year in the month of September, India had imported 7, 73,497 tonnes of palm oil and become the largest vegetable oil buyer.
In the month of September 2016, the total vegetable oil imports of the country increased by 9% and reached from 13, 99,993 tonnes to 15,19,277 tonnes in the same month this year.
SEA provided an argument informing, “Since Apr 2016 forward price of RBD Palmolein has stayed same or lower than Raw Hand Oil (CPO), motivating bigger import of RBD Palmolein at the cost of CPO. The spread between palm oil and soft oil increased motivating larger import of palm oils.”
The importers are purchasing sunflower oil in large quantities as it has a price advantage against soybean oil. During September2016-August 2017, the value of rupee has appreciated and it is also another factor which contributed to increased import of vegetable oil. Now Palm oil makes 61% of the total vegetable oil imports of the country.
In September 2016 the RBD Palmolein import increased from 2.05 lakh tonnes to 2.61 lakh tonnes in the same month of the current year, if we see the palm oil products. From 5.64 lakh tonnes to 6.51 lakh tonnes, the imports of CPO increased and in the said period, the inbound shipments of crude palm kernel oil (CPKO) surged from 3948 tonnes to 18,100 tonnes.
In September 2017, the import of sunflower oil reached to 1.97 lakh tonnes from 1.03 lakh tonnes in the same month of last year. From 4.69 lakh tonnes to 3.57 lakh the import of soyabean oil fell down. In the period under consideration, Rapeseed oil and mustard oil shipments declined from 29,951 to 15,491 tonnes.
Mostly from Indonesia and Malaysia India buys palm oil. Including soyabean oil, a minor quantity of crude soft oil has been supplied by Latin America. To India Ukraine and Russia supply sunflower oil.