Edible oil stocks equivalent to 42 days, against norm of 30 days requirement is putting pressure on prices: SEA

image

The stock of edible oils as on 1st June, 2018 at various ports is estimated at 1,002,000 tons (CPO 320,000 tons, RBD Palmolein 170,000 tons, Degummed Soybean Oil 230,000 tons, Crude Sunflower Oil 270,000 tons and 12,000 tons of Rapeseed (Canola) Oil) and about 1,660,000 tons in pipelines.

Total stock at ports and in pipelines is reported at 2,662,000 tons, increased by 324,000 tons from 2,338,000 tons in May 2018. India’s total demand for edible oils during 2017-18 is estimated at 23 lakh tons.

Monthly requirement is about 19.00 lakh tons and operate at 30 days stock against which currently holding stock over 26.62 lakh tons equal to 42 days requirements. “This is the ever highest stock putting pressure on domestic prices of edible oils,” said SEA release.

Import of vegetable oils during May 2018 is reported at 1,286,240 tons compared to 1,384,439 tons in May 2017 consisting 1,246,462 tons of edible oils and 39,778 tons of non-edible oils i.e. down by 7%. The overall import of vegetable oils during November 2017 to May 2018 is reported at 8,604,535 tons compared to 8,522,704 tons i.e. Up by 1%.

The current duty structure coupled with rupee depreciation and credit crunch in the market has slow down the import, SEA said.

“Secondly In May ’18, first time, we have seen that import of soft oils (soya, sunflower & rape) is higher than palm oil with Soft oils share at 60% while palm oil just 40% only. Also soft oils import and sunflower oil import are highest in any single month since India started importing edible oils in 1994,” the release stated.

Source: Economic Times