14/07/2008 (The Hindu Business Line), Chennai - RBD palmolein witnessed record import during June, thanks to its effective Customs duty declining to 2.8 per cent.

According to Solvent Extractors’ Association of India (SEAI), RBD palmolein imports during June were 92,846 tonnes against 15,137 tonnes during the same period a year ago. The jump has been significant even from imports during April and May, when hardly a total of 22,000 tonnes were brought into the country.

“RBD palmolein imports increased because of the drop in duty differential compared with crude palm oil. Also, imports on behalf of the Government are RBD palmolein and it has led to record import,” said Mr B.V. Mehta, Executive Director, SEAI.

Duty reduction fillip
On April 1, the Centre made import of crude palm oil duty free, while cutting the levy to 7.5 per cent for RBD palmolein. Besides, a three per cent education cess is also levied on the collection of 7.5 per cent duty. The move on the duty reduction was made to negate rising edible oil prices in the global and domestic markets.

The effective duty is even lower since the Centre has fixed a tariff value based on which the Customs duty is levied. On RBD palmolein, the Centre has fixed the tariff value at $484. However, during June RBD palmolein price c.i.f India ruled between $1,245 and $1,355 a tonne. The tariff value has remained unchanged since December 2006 in view of global edible oil prices ruling firm.

High Imports
The Centre is purchasing RBD palmolein for supply through ration shops at subsidised price in its efforts to ease the burden of soaring inflation rate. “For the Government, it helps to import RBD palmolein since it is easy to pack and distribute,” said Mr Mehta.

“Imports as such were higher in June since buyers kept a low profile during April and May, fearing sudden fall. The pipeline has gone dry and therefore, imports have picked up,” he said.

“RBD palmolein imports will continue to be high, particularly since Government agencies are floating tender seeking that only. Also, we will see higher imports being higher at least until October,” he said.

This is in view of a delay in sowing of oilseeds. “We have had the first spell of rains and sowing has been completed in some of the areas. The second spell is being awaited and therefore, arrivals of oilseeds this year could take either mid or end of October,” Mr Mehta said.

As such, edible oil imports during June have been estimated at 5.50 lakh tonnes (lt) against 5.47 lt during June last year. For the current oil year to October, imports have been put at 30.96 lt against 27.48 lt. On the other hand, imports of non-edible oils have been pegged at 4.7 lt for the season against 4.5 lt. Overall imports of vegetable oils during the current season till June are 35.67 lt against 31.99 lt, a rise of 12 per cent compared with last year.

Soya oil picks up
With the strike by Argentine farmers ending in June, soyabean oil imports also picked up with 1.20 lt coming into the country, against a meagre 7,000 tonnes in May. Totally, 3.55 lt of degummed or crude soyabean oil have come into the country since November against 6.50 lt during the same period a year ago.

In fact, while price of palm group of oils has shown a tendency to dip in July, that of soyabean oil has increased.