Vegetable oil import up 2pc in May on record RBD palmolein shipments

NEW DELHI: Vegetable oils import rose by 2 per cent in May to 9.17 lakh tonnes as the country's refined palmolein import surged to an all-time high during last month, according to industry data released today.

The country had imported 8.96 lakh tonnes of vegetable oils (edible oil and non-edible oils) in the year-ago period.

"Import of RBD Palmolein reported to 3,73,837 tonnes in May 2013, highest in any single month since edible oil allowed unde OGL in 1994," Solvent Extractors' Association of India (SEA) said in a statement.

The association attributed the record import of RBD palmolein to reduction in duty difference between crude and refined palmolein and inverted duty structure by palm oil exporting countries.

During November 2012 to May 2013, vegetable oils import rose by 10.43 per cent to 61.97 lakh tonnes as compared to 56.11 lakh tonnes. Oil year runs from November to October.

Refined palmolein import during the first seven months of the 2012-13 oil year rose to 12.48 lakh tonnes against 10.84 lakh tonnes in the year-ago period.

"In last two months share of refined oil (RBD Palmolein) has jumped to over 40 per cent from 16 per cent in March 13," SEA said.

India imports palm oil from Indonesia and Malaysia, while soyabean oil from Argentina and Brazil. The import duty on crude edible oil is 2.5 per cent and 7.5 per cent on refined edible oil.

Stock of edible oils as on June 1, 2013 at various ports is estimated at 6.75 lakh tonnes and about 13 lakh tonnes in the pipeline, SEA said.