Edible oil refineries plead for help

In a blow for domestic refineries, the country’s import of refined edible oil is likely to double, to set a new record, in the current oil year (November ’15–October ’16), due to better realisation than importing of crude palm oil (CPO) and local processing.

Data from the Solvent Extractors’ Association (SEA) show import of refined, bleached and diodised or RBD palmolein at 2.19 million tonnes between November and August, as compared to 1.25 mt in the corresponding period last year. Till now, import of RBD palmolein was the highest in 2012-13, at 2.23 mt.

“Assuming the trend continues in the remaining two months, our overall import of RBD would reach 2.5 mt, a new record,” said B V Mehta, executive director, SEA.

Around half of India’s refining capacity of around 25 mt has been idle for several years.

The country meets 55-60 per cent of its edible oil demand through import, largely from Indonesia, Malaysia and Argentina. India’s production of edible oil has stagnated for years at 6.5-7.5 mt from domestic sources, while consumption has been rising at 500,000 tonnes every year, on growing population and rising incomes. India’s overall edible oil consumption in a year is currently 23.5 mt.

Import of vegetable oil (both refined and crude) rose four per cent to 12 mt between last November and August, from 11.6 mt in the same period last year. Overall oil import is estimated, therefore, at 14.5 mt, similar to last year.