India’s edible oil import is likely to fall around 4% on year to 14.30-14.40 mln ton in 2017-18 (Nov-Oct), the lowest in the last three years, the Solvent Extractors’ Association of India said. In 2014-15, India had imported 14.42 mln ton of edible oil, while purchases in 2015-16 totalled 14.57 mln tn. Overseas purchases had touched a record high of 15.08 mln ton, according to data from the SEA.
“Imports are going to fall for a host of reasons sharp rise in import duties in the current year, weakening of rupee increase in domestic crushing have been responsible for lower imports.
India has raised customs duty on edible oils nearly seven-fold from 7.5% in June 2017 to more than 50% as of now. This has had a negative impact on consumption in the price-sensitive Indian market.
Indian rupee which has depreciated nearly 8.5% so far in 2018 has also made imports much costlier.
crushing is likely to increase, adding 600,000-700,000 ton of edible oil in the supply pipeline.
Import of refined, bleached and deodorized palm olein have fallen sharply to 1.49 mln ton in Apr-Jul from 2.2 mln ton in the corresponding period a year ago, imports of sunflower oil have jumped in the last few months due to lower import duty when compared with those on palm oils until July.
However, with the rationalization of duties on all edible oils, sunflower oil imports are expected to lose some ground to soy oil, which is $65-$70-per-tn cheaper.
In Apr-Jul, India imported 2.0 mln ton of sunflower oil compared with the record 2.1 mln tn bought in 2016-17. Import of sunflower oil may touch a record high this year, traders said.