Edible oil import in the country declined by 4% in the oil year of 2017-18 (Oct-Sep) in comparison to last year, despite lower domestic production and consumption increased by around 2.5 to 4% in India.
According to the latest update from the SEA of India, Sep 2018 edible oils imports reported 1422K MT compared to 1465K MT in Aug 2018 and 1501K MT in Sep 2017, this is 3% monthly decline and 5% yearly lower import of edible oil in the country. However, import in the country starts increasing from last month despite record rupee depreciation as local edible stocks dried up due to lesser import during Jun to July’18 period. Along with this spread between palm oil and soft oil declining from past month which encouraging more palm oil import in the country.
Palm oil contains major share in the Indian veg oil basket accounts around 60% share from total veg oil import. Previous in month of May’18 this 60% ratio has declined to 40% due to high import duty and declined soft oil prices. But from the last two months percentage share now resumed to normal as the difference between CIF India landed price of CPO & RBD pemoline increased and encouraged more CPO import in the country. From the last one-year edible oils prices have gone down by 11 to 25% due to excess supply in the global market and low demand from India. Indian rupee depreciated by nearly 15% also made the import expensive and reached 74 levels.