In the first month of the 2022-23 oil year, imports increased by 34.24 percent (November to October). Imports of edible oil increased to 15.28 lt in November 2022-23, up from 11.38 lakh tonnes (lt) in November 2021-22, according to data from India's Solvent Extractors' Association (SEA).
According to B.V. Mehta, Executive Director, SEA of India, India imported 9.31 lt of CPO in November, up from 7.56 lt in October, a 23.05% increase. The CPO imports in November were the highest in a single month. The import of RBD palmolein into India increased by 58.07 percent in November to 2.02 lt from 1.27 lt in October. India imported 2.83 lt of CPO and 29,900 tonnes of RBD palmolein from Malaysia in November, and 5.19 lt of CPO and 1.72 lt of RBD palmolein from Indonesia.
Mehta stated that the excessive import of RBD palmolein harms domestic refiners, and that the current import duty difference of 7.5% between CPO (5%) and refined oil (12.5%) encourages the import of refined palmolein rather than CPO. Palmolein imports increased by 168% during the recently concluded oil year 2021-22, he said, adding that RBD palmolein imports exceeded 2 lt in November alone.
"Needless to say, the import of finished goods is contrary to our national interests and affects the capacity utilisation of our palm refining industry. The main reason for the increase in palmolein imports is the encouragement given to their industry by exporting countries (Malaysia and Indonesia). They have maintained high export duties on CPO while lowering export duties on palmolein (finished product). "India's import duty differential of 7.5% between CPO and palmolein is insufficient to prevent palmolein imports," he said.
According to SEA, the government should create a 15% duty difference between CPO and RBD palmolein by increasing import duty on RBD palmolein from 12.5% to 20%. This would assist in reducing palmolein imports and replacing them with CPO imports. Mehta stated that overall imports into the country would be unaffected and that it would have no effect on edible oil inflation, but that it would help improve capacity utilisation and job creation.
Total palm oil imports increased to 11.41 lt in November 2022-23, up from 5.39 lt in November 2021-22, while soft oil imports decreased to 3.87 lt in November 2022-23 from 5.99 lt in November 2021-22. Palm oil's share increased to 75% in 2022-23, up from 47% in 2021-22, while soft oils fell to 25% in 2022-23, down from 53% in 2021-22.
India's imports of crude soyabean oil fell by 31.42 percent in November to 2.29 lt from 3.34 lt in October. Argentina supplied the most crude soyabean degummed oil to India (1.51 lt), followed by Brazil (78,229 tonnes). India had imported 4.74 lt of crude soyabean oil in November 2021.
However, India's crude sunflower oil imports increased by 8.81 percent in November to 1.57 lt from 1.44 lt in October. India imported crude sunflower oil worth 75,500 tonnes from Ukraine, 42,574 tonnes from Russia, and 10,000 tonnes from Argentina.
In November 2021, India imported 1.25 litres of crude sunflower oil. India's import of vegetable oils (including edible and non-edible oils) increased by 10.64 percent to 15.45 lt in November 2022-23, up from 11.73 lt in November 2021-22. However, in October 2022, the import of vegetable oils was 13.96 lt.
