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As on 16.06.

2015

Commodity Profile of Edible Oil for June - 2015


Contents
1.

Edible Oil estimates for India ( marketing year- November 2014- October 2015) ................ 2

2.

Production Trend of Domestic Oilseeds ................................................................................. 2

3.

Production Trend of Domestic Edible Oils ............................................................................ 3

4.

Global Production Trend of Major Edible Oils ...................................................................... 3


Groundnut oil,Mustrad oil, Sunflower oil, Soyabean oil........................................................ 3

5.

Major Exporting and Importing Countries of Edible Oils...................................................... 5


Groundnut oil, Mustrad oil, Sunflower oil, Soyabean oil....................................................... 5

6.

Indias import of major edible oils ..................................................................................... 10

7.

Indias top import sources of Palm, Soya and Sunflower Oils ............................................. 10

8.

Movement of Domestic and International major Edible Oils Prices .................................... 11

9.

Trade Policy .......................................................................................................................... 13


9.1

Import Policy ................................................................................................................. 13

9.2

Export Policy ................................................................................................................. 16

9.3

Bound Duty, Standard Duty and Current Applied Duty ............................................... 16

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1. Edible Oil estimates for India ( marketing year- November 2014- October 2015)
(Unit: Million Tonnes)

2013-14
0.92
8.08
10.12
19.12
0.02
19.10

Table 1:Production, Stocks, Trade and Availability of Edible Oils


2014-15
April,2015 Source
Estimates*
1.63
Opening Stock
Agriwatch
7.91
8.97
18.51
0.03
18.48

Production
Imports
Availability
Total Export
Total Available for domestic
consumption

5.91**
-

Agriwatch
DOC
DOC

Source: Agriwatch and Department of Commerce


*Opening Stock and Production are taken from Agriwatch, Import and Export are three years average from D/o
Commerce.
**Figure of import is for the period Nov-Apr, 2014-15.
Availability: Opening Stock plus domestic production plus Imports; Total Availability for Domestic Consumption:
Availability minus total export

The estimated figure indicates that domestic production (i.e 7.91 million MT) of edible oils in
2014-15 may be less than that of the actual production (i.e, 8.08 million MT) in 2013-14.

2. Production Trend of Domestic Oilseeds

Source: Directorate of Economics and Statistics

Indias Soybean production has increased in the last 10 years at CAGR of 4.54 percent.
Production of Groundnut increased substantially from 4.60 million tons in 2012-13 to
9.67 million tonnes 2013-14 showing a growth of about 110%. However, production is
estimated to be at 6.65 million tons in 2014-15.

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3. Production Trend of Domestic Edible Oils

Source: Directorate of Economic and Statistics

Soybean oil production has increased in the last 10 years at CAGR of 5.67 percent.
Production of Rapeseed oil has increased in the last 10 years at CAGR of 0.46 percent.

4. Global Production Trend of Major Edible Oils


A) Groundnut oil

Source: United States Department of Agriculture

China is the top producer followed by India and Burma in 2014-15.


Indias share in global production of Groundnut Oil in 2014-15 was 26.22 percent.

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B) Mustard Oil

Source: United States Department of Agriculture

European Union (EU) is the top producer followed by China and Canada in 2014-15.
India is the fourth largest producer.
Indias share in global production of mustard oil in 2014-15 was 10.40 percent.

C) Sunflower oil

Source: United States Department of Agriculture

Ukraine is the largest producer followed by Russia and EU in 2014-15. India is the 9th
largest producer.
Indias share in global production of sunflower oil in 2014-15 was 1.37 percent.

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D) Soybean oil

Source: United States Department of Agriculture

China, United States, Argentina and Brazil are the key producers of Soybean oil in 201415.
Indias share in global production of Soybean Oil in 2014-15 is around 4.13 percent.

5. Major Exporting and Importing Countries of Edible Oils


A. Groundnut oil

Source: United States Department of Agriculture

Argentina and Brazil are the top two exporting countries of Groundnut oil in 2014-15.
India is the 8th largest exporting country of groundnut oil in the world.

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Source: United States Department of Agriculture

B.

EU and China are the major importing bloc/country of groundnut oil in 2014-15.

Mustard oil

Source: United States Department of Agriculture

Canada is the largest exporter of Mustard oil in the world followed by EU and Russia.

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Source: United States Department of Agriculture

The US and China are the leading importing countries of Mustard oil in the world. India
is the 9th largest importing country in 2014-15.

C. Sunflower oil

Source: United States Department of Agriculture

Ukraine and Russia are the top two global exporters of sunflower oil during 2014-15.

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Source: United States Department of Agriculture

D.

India is the largest importer of Sunflower oil followed by EU, Egypt, and Turkey during
2014-15.
There is a secular increase in the importation of Sunflower oil of China.

Soybean oil

Source: United States Department of Agriculture

Argentina is the largest exporting country in the world followed by Brazil, EU, and the
US during 2014-15.

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Source: United States Department of Agriculture

India is the largest importer of soybean oil that constituted 17.55 percent of the global
import in the year 2014-15.

E. Palm oil

Source: United States Department of Agriculture

Indonesia and Malaysia hold both competitive as well as comparative advantage in


exportation of Palm oil in the world.

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Source: United States Department of Agriculture

India is the largest importer of Palm oil in the world followed by China, EU and Pakistan.

6. Indias import of major edible oils

Year
2010-11
2011-12
2012-13
2013-14
2014-15

(Million Tonnes)
Table 2: Indias Import of Major Edible Oils during 2010-11 to 2014-15
Soybean Oil
Palm Oil
Sunflower Oil
1.2
4.9
0.6
0.8
6.5
0.8
1.1
8.4
1.1
1.3
7.6
1.1
2.3
8.1
1.7

Source: Department. Of commerce

India imports substantial amount of edible oils for its domestic consumption. Among all
edible oils importation into India, Palm oil importation share is around 70-80 percent.

7. Indias top import sources of Palm, Soya and Sunflower Oils


Table 3: Indias Top Import Sources of Palm, Soya and Sunflower Oils
Edible Oils
Import Source
Soybean Oil
Argentina and Brazil
Palm Oil
Indonesia and Malaysia
Sunflower
Ukraine and Mexico
Source: Department of Commerce

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8. Movement of Domestic and International Edible Oils Prices


I.

Groundnut oil

Source: Domestic Price Agriwatch and International Price are FAO Prices.

II.

Domestic prices of Groundnut oil are lower than that of International prices during July
2013 to April 2014 and June to December 2014.

Mustard oil

Source: Domestic Price Agriwatch and International Price are FAO Prices.

Domestic price of Mustard Oil is higher than that of International prices throughout the
years.
Since April 2014, the domestic price showing increasing trend, while during the same
period, international prices are showing decreasing trend.

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III.

Sunflower oil

Source: Domestic Price Agriwatch and International Price are CIF Ukraine origin Prices.

IV.

Domestic prices of Sunflower oil are higher that International prices throughout.

Soybean oil

Source: Domestic Price Agriwatch and International Price are CIF Argentina origin Prices.

Domestic prices of soybean oil are higher than International prices throughout period.

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V.

Palm oil

Source: International landing Price at Kandla, Agriwatch.

International price of palm oils are showing decreasing trend from August 2014

9. Trade Policy
9.1 Import Policy

Table-3: Import Policy


HS Code
1507
1507 10 00
1507 90
1507 90 10
1507 90 90
1508
1508 10 00
1508 90
1508 90 10
1508 90 91
1508 90 99
1509
1509 10 00
1509 90
1509 90 10
1509 90 90
1510

1510 00 10
1510 00 91
1510 00 99
1511

Item Description
Soya-bean oil and its fractions, whether or not
refined, but not chemically modified
Crude, whether or not degummed
Other:
Edible grade
Other
Groundnut Oil and its fractions, whether or not
refined but not chemically modified
Crude
Other:
Deodorized (Salad Oil)
Other :
Edible Grade
Other
Olive Oil and its fractions, whether or not refined
but not chemically modified
Virgin
Other:
Edible grade
Other
Other Oils and their fractions, obtained, solely from
olives, whether or not refined, but not chemically
modified, including blends of these oils or fractions
with oils or fractions of heading 1509
Crude oil
Edible Grade
Other
Palm Oil and its fractions, whether or not refined,

Policy
Conditions

Free
Free
Free

Free
Free
Free
Free

Free
Free
Free

Free
Free
Free

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Remarks

1511 10 00

but not chemically modified


Crude

Free

Import not permitted through


any port in Kerala.

1511 90
1511 90 10

Other:
Refined bleached deodorised palm oil

Free

1511 90 20

Refined bleached deodorised palmolein

Free

1511 90 90

Other

Free

Import not permitted through


any port in Kerala.
Import not permitted through
any port in Kerala.
Import not permitted through
any port in Kerala.

1512

1513 11 00

Sunflower Seed, Safflower or Cotton Seed Oil and


their fractions thereof, whether or not refined, but
not chemically modified
Sunflower Seed or Safflower Oil and fractions
thereof :
Crude Oil:
Sunflower Seed Oil
Safflower Seed Oil (Kardi Seed Oil)
Other:
Sunflower oil, edible grade
Sunflower oil, non-edible grade(other than crude
oil)
Saffola oil, edible grade
Saffola oil, non-edible grade
Other
Cotton Seed Oil and its fractions:
Crude Oil, whether or not gossypol has been
removed
Other:
Edible grade
Other
Coconut (Copra), Palm Kernel or Babassu oil and
fractions thereof, whether or not refined, but not
chemically modified
Coconut (Copra) oil and its fractions:
Crude oil

1513 19 00

Other

1513 21
1513 21 10

Palm Kernel or Babassu oil and fractions thereof:


Crude Oil:
Palm Kernel Oil

Free

Import not permitted through


any port in Kerala.

1513 29
1513 29 10

Other:
Palm Kernel Oil and its fractions

Free

Import not permitted through


any port in Kerala.

1513 29 20
1513 29 30
1513 29 90
1514

Babassu Oil and fractions edible grade


Babassu Oil and fractions, other than edible grade
Other
Rape, Colza or Mustard oil and its fractions thereof,
whether or not refined , but not chemically modified
Low erucic acid rape or colza oil and its factions:
Crude oil:
Colza Oil
Rape Oil
Other
Other:
Refined colza oil of edible grade
Refined mustard oil of edible grade

1512 11
1512 11 10
1512 11 20
1512 19
1512 19 10
1512 19 20
1512 19 30
1512 19 40
1512 19 90
1512 21 00
1512 29
1512 29 10
1512 29 90
1513

1514 11
1514 11 10
1514 11 20
1514 11 90
1514 19
1514 19 10
1514 19 20

Free
Free
Free
Free
Free
Free
Free
Free

Free
Free

Import allowed through STC


subject to para 2.11 of Foreign
Trade Policy.
Import allowed through STC
subject to para 2.11 of Foreign
Trade Policy.

Free
Free
Free

Free
Free
Free
Free
Free

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1514 19 90
1514 91
1514 91 10
1514 91 20
1514 91 90
1514 99
1514 99 10
1514 99 20
1514 99 30
1514 99 90
1515

1515 11 00
1515 19
1515 19 10
1515 19 90
1515 21 00
1515 29
1515 29 10
1515 29 90
1515 30
1515 30 10
1515 30 90
1515 50
1515 50 10
1515 50 91
1515 50 99
1515 90
1515 90 10

1515 90 20

1515 90 30

1515 90 40

1515 90 91
1515 90 99
1516

1516 10 00
1516 20
1516 20 11
1516 20 19
1516 20 21
1516 20 29

Other
Other:
Crude oil:
Colza Oil
Mustard Oil
Rapeseed Oil
Other:
Refined colza oil of edible grade
Refined mustard oil of edible grade
Refined rapeseed oil of edible
Other
Other fixed vegetable fats and Oils (including
Jojoba oil) and their fractions, whether or not
refined, but not chemically modified
Linseed Oil and its fractions :
Crude Oil
Other:
Edible grade
Other
Maize (Corn) Oil and its fractions:
Crude oil
Other:
Edible grade
Other
Castor Oil and its fractions:
Edible grade
Other
Seasame oil and its fractions:
Crude oil
Other:
Edible grade
Other
Other:
Fixed vegetable oils, namely the following:Chul
moogra oil, Mawra oil, Kokam oil, Tabacco seed
Oil, Sal Oil
Fixed vegetable Oils, namely the following: Neem
Seed Oil, Karanj Oil, Silk cotton Seed Oil, Khakhon
Oil, Water Melon Oil, Kusum Oil, Rubber seed Oil,
Dhup Oil, Undi Oil, Maroti Oil, Pisa Oil, Nahar Oil
Fixed Vegetable Oils, namely the following :
Cardamom Oil, Chillies/ Capsicum Oil, Turmeric
Oil, Ajwain Seed Oil, Niger Seed Oil, Garlic Oil
Fixed Vegetable Oils of edible grade namely:
Mango Kernel Oil, Mahua Oil, Rice bran Oil
Other:
Edible grade
Other
Animal or Vegetable fats and oils and their
fractions, partly or wholly hydrogenated, interesterified, re-esterified or eladlnised, whether or not
refined, but not further prepared
Animal fats and oils and their fractions
Vegetable fats and oils and their fractions:
Cotton Seed oil :
Edible grade
Other
Ground nut oil:
Edible grade
Other
Hydrogenated Castor oil (opal wax):

Free

Free
Free
Free
Free
Free
Free
Free

Free
Free
Free
Free
Free
Free
Free
Free
Free
Free
Free
Free

Free

Free

Free

Free
Free

Prohibited

Free
Free
Free
Free

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Not permitted to be imported

1516 20 31
1516 20 39
1516 20 91
1516 20 99

Edible grade
Other
Other:
Edible grade
Other

Free
Free
Free
Free

Source: Directorate General of Foreign Trade (DGFT)

9.2 Export Policy


At present, export of edible oils is prohibition*. The following exemptions are permitted from the
prohibition on export of edible oils:
a) Castor oil
b) Coconut oil from all EDI Ports and through all Land Custom Stations (LCS) on Indo-Nepal, IndoBangladesh, Indo-Bhutan and Indo-Pakistan borders.
c) Deemed export of edible oils(as input raw material) from DTA to 100% EOUs for production of
non-edible goods to be exported
d) Edible oils from Domestic Tariff Area (DTA) to Special Economic Zones (SEZs) to be consumed by
SEZ units for manufacture of processed food products, subject to applicable value addition norms
e) Edible oils produced out of minor forest produce, ITC (HS) Code 15159010, 15159020, 15159030,
15159040, 15179010 and 15219020.
f) 10,000 MTs of Organic edible oils per annum. The conditions notified in Notification No. 50 dated
03.06.2011 for export of organic edible oils will continue to apply.
(* DGFTs Notification No 22 (RE 2013)/2009-2014 dated 18 June, 2013)
ii) Export of edible oils in branded consumer packs of upto 5 Kgs is permitted with a Minimum Export Price
of USD 900 per MT (vide DGFTs Notification No. 108 (RE2013)/2009-14 dated 6th Feb, 2015)
iii) The prohibition will not apply to export of Peanut Butter, ITC (HS) Code 15179020.
(Source: DGFT)
9.3 Bound Duty, Standard Duty and Current Applied Duty

Table 4: Bound Duty, Standard Duty and Current Applied Duty


HS Code

15071000
15079010
15089091
15099010
15111000
15121910

Description

Soya- bean Crude Oil


Soya- bean Edible grade
Groundnut edible Grade
Olive Edible grade
Palm Crude Oil
Sunflower oil edible
Grade
15141120 Low erucic rape oil
15141920 Refined rapeseed oil of
edible grade
15149920 Refined rapeseed oil of
edible grade

Bound Duty

Standard Duty

Current Applied Duty#

45
45
300
40
300
300

45
45
100
40
100
100

7.5
15.0
15.0
15.0
7.5
15.0

75
75

75
75

7.5
15.0

75

75

15.0

Source: DGFT, Department of Revenue, Government of India and World Trade Organisation (WTO)
# applied duty on crude edible oil has been increased from 2.5% to 7.5% and on refined edible oil from 10% to 15% by
Department of Revenue vide Notification No. 34/2014-Customs dated 24.12.2014.
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