Edible oil (indicative photo)
Edible oil imports jumped 63 percent to a record 16.98 lakh tonnes during September due to record imports of palm oil in India. SEA, the leading organization of the edible oil sector, gave this information. The Solvent Extractors Association of India (SEA) said in a statement that the total import of vegetable oils, which includes both edible and non-edible oils, increased by 66 per cent to 17,62,338 tonnes during September, as compared to the same in September, 2020. The import was of 10,61,944 tonnes.
The import of edible oils during September, 2021 has set a new record of import of 16.98 lakh tonnes in a single month, SEA said. Earlier in October 2015, India had imported 16.51 lakh tonnes. BV Mehta, Executive Director, SEA said, “Since India started importing palm oil in 1996, the import of 12.62 lakh tonnes of palm oil in September 2021 represents the highest import in a single month.”
Rapid growth due to relaxation in import policy
Import of non-edible oils increased to 63,608 tonnes in September from 17,702 tonnes in the same month last year. During November, 2020 to September, 2021 (11 months), the import of vegetable oils increased by two percent to 1,24,70,784 tonnes as compared to 1,22,57,837 tonnes in the corresponding period of last year. Out of total vegetable oil imports, edible oil imports increased from 1,19,50,501 tonnes to 1,20,85,247 tonnes. The import of non-edible oil increased from 3,07,333 tonnes to 3,85,537 tonnes.
The Vegetable Oil Marketing Year runs from November to October. SEA said that due to relaxation in policy for import of RBD palmolein with effect from July 1, 2021, there was a sharp increase in imports during August and September, 2021. Overall imports jumped more than 50 per cent to 6.28 lakh from November 2020 to September 2021. The association said that during the same period last year, 4.16 lakh tonnes of RBD palmolein was imported.
The import of RBD Palmolein and RBD Palm Oil has moved from ‘Restricted’ to ‘Free’ category from July, 2021 to December 31, 2021. The association said, “In the last few months, there have been frequent changes in the policy of import duty on edible oils by the Government of India to check the rising prices of edible oils in the country.”
India imports from these countries
At present, the effective import duty on crude palm oil is 24.75 percent, while the duty on refined palmolein and refined palm oil is 35.75 percent. The duty on crude soybean and refined soybean oil is 24.75 percent and 35.75 percent respectively. Similarly, import duty of 24.75 percent on crude sunflower oil and 35.75 percent on refined sunflower oil is effective.
The effective duty on crude rapeseed oil is 38.50 percent and on refined rapeseed oil is 49.50 percent. Indonesia and Malaysia are the major suppliers of RBD palmolein and crude palm oil to India. The country mainly imports crude soybean oil from Argentina.
Also read- Paddy procurement is happening fast in Haryana, but farmers angry due to delay in payment, money not received even after a week