Palm Oil Import: India’s import of refined palm oil (RBD) has increased by 2.7 times to 17.12 lakh tonnes in the last 11 months. Industry body SEA said yesterday that imports have increased due to falling prices in Indonesia. The Solvent Extractors Association of India (SEA) said the country had imported 6.28 lakh tonnes of refined palm oil in the same period a year ago. The oil year runs from November to October.
India’s imports of vegetable oils, the world’s leading vegetable oil buyer, grew by four per cent to 1.30.1 million tonnes during the November-September period of FY 2021-22.
According to the SEA, Indonesia had paid customs duty on refined palm oil, keeping the duty on crude palm oil (CPO) higher till three months ago. This enabled Indonesian exporters to export refined palm oil at concessional rates, leading to a sharp increase in India’s RBD palmolein imports in August-September.
However, the country’s CPO imports declined to 52.37 lakh tonnes during this period. It was 68.64 lakh tonnes in the same period a year ago. At the same time, total palm oil imports declined to 70.28 lakh tonnes during November-September. It was 76.27 lakh tonnes in the same period a year ago. According to SEA data, imports of light oils such as soybean and sunflower increased to 56.35 lakh tonnes during November-September.
India has imported record palm oil in the month of August after a sharp fall in the prices of palm oil in the international market. There has been a jump of 87 percent in the import of palm oil in August 2022 as compared to the month of July, which is the highest in 11 months. The price of palm oil in the international market has come down to a one-year low. India is one of the world’s largest palm oil importer countries. This will help in reducing the amount of edible oil in the country. At the same time, Indonesia, the largest producer, will be helped in reducing inventories.
The slowdown in foreign markets is affecting the prices of all commodities, including the price of edible oil. After the fall in foreign markets, the prices of oil and oilseeds in the local markets have fallen. There has been a fall in the prices of edible oil in the international markets. Palm oil prices have fallen to one-year lows. Soybean, CPO, palmolein and sunflower prices have come down by almost half due to the global slowdown. On the other hand, sporadic arrivals of new soybean crop have also started affecting its prices.
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