1 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

As on 17.09.2019

Commodity Profile of Edible Oil for September - 2019

Contents

1. Edible Oil estimates for India (marketing year- November 2018- October 2019) ....................... 2

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

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

4. Global & Domestic Production, Exporters and Importers of Major edible oil ............................ 3

5. Global Production Trend of Major Edible Oils ............................................................................ 4

6. Major Exporting and Importing Countries of Edible Oils ............................................................ 6

7. India’s import of major edible oils ............................................................................................. 11

8. India’s top import sources of Palm, Soya and Sunflower Oils ................................................... 12

9. Movement of Domestic and International Edible Oils Prices .................................................... 12

10. Domestic Future price of Soybean and Palm oil……………………………………………….15

11. International Future price of Soybean and Palm oil……………………………………….....15

12. Trade Policy ............................................................................................................................ 16

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

12.2 Import Policy ....................................................................................................................... 16

12.3 Duty structure of Edible Oils .............................................................................................. 16

12.4 Status of Edible oils in FTA/FTA ....................................................................................... 16

13. Significant changes for the month ............................................................................................... 16

2 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

1. Edible Oil estimates for India (marketing year- November 2018- October 2019)

(Unit: MillionTonnes)

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

2017-18 2018-19* July, 2019 Source

10.38 10.06$ Production 10.06$ DSVO

14.59 14.92 Imports 12.46** DOC

24.97 24.98 Availability 22.52

0.84 0.75 Export and Industrial use 0.75 DVVOF

24.13 24.23 Total Available for domestic

consumption

21.77

Source: Directorate of Vanaspati, Vegetable oil and Fats (DVVOF) and Department of

Commerce

$For 2018-19 estimates, figure are as per Directorate of Sugar and Vegetable Oils

*For 2018-19 estimates, Production, Export Industrial use are estimates from DVVOF and Import

is 3 years average from DGCI&S, Kolkata.

**Figure of import is for the period Nov-Mar, 2018-19.

Availability: Domestic production plus Imports;

Total Availability for Domestic Consumption: Availability minus export and Industrial use.

2. Production Trend of Domestic Oilseeds

Source: Directorate of Economics and Statistics

India’s Soybean production has increased in the last 10 years at CAGR of 1 percent.

Groundnut production is estimated to be 8.94 Million Tonnes in 2017-18 as compared to

7.46 Million Tonnes in 2016-17 showing a growth of around 20%.

0

2

4

6

8

10

12

14

16

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Mil

lio

n T

on

nes

Figure 1: Production Trend of Domestic Oilseeds

Groundnut Rapeseed Soyabean Sunflower

3 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

3. Production Trend of Domestic Edible Oils

Source: Directorate of Vanaspati, Vegetable oil and Fats (DVVOF)

Soybean oil production has increased in the last 10 years at CAGR of 1.48 percent.

Rapeseed oil production was 2.33 Million MT in 2017-18.

4. Global & Domestic Production, Exporters and Importers of Major edible oil

(Qty in Million MT)

Table 2: Global & Domestic Production, Exporters and Importers of Major Edible Oil

Edible Oil

Global

Production

(2018-19)

India’s

Production

(2018-19)

Major Exporters/ Importers

(2018)

Ground nut oil 5.57 0.99 Exporters: Argentina, Brazil, Senegal

Importers: China, Italy, USA

Mustard oil 27.96 2.13 Exporters: Canada, Germany, Russia

Importers: USA, China, Netherland

Sunflower oil 19.45 0.10 Exporters: Ukraine, Russia, Netherland

Importers: India, China, Iran

Soybean oil 56.97 1.62 Exporters: Argentina, Brazil, USA

Importers: India, Bangladesh, Algeria

Palm oil 73.49 0.20 Exporters: Indonesia, Malaysia, Netherland

Importers: India, China, Pakistan

Source: Global Production: USDA, India’s Production: DVVOF, Exporters & Importers: Comtrade

0

0.5

1

1.5

2

2.5

3

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Mil

lio

n T

on

nes

Figure 2: Production Trend of Domestic Edible oils

Groundnut Oil Rapeseed Oil Soyabean Oil Sunflower Oil

4 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

5. Global Production Trend of Major Edible Oils

A) Groundnut oil

Source: United States Department of Agriculture

China was the top producer followed by India and Burma in 2018-19.

India’s share in global production of Groundnut Oil in 2018-19 was around 18 percent.

B) Mustard Oil

Source: United States Department of Agriculture

European Union (EU) was the top producer followed by China and Canada in 2018-19.

India may be the fourth largest producer.

India’s share in global production of mustard oil in 2018-19 was around 8 percent.

China India Burma Nigeria Sudan

2018-19 2.79 1.04 0.27 0.27 0.23

2019-20 2.87 1.14 0.27 0.27 0.23

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Mil

lio

n T

on

nn

esFig 3: Production Trend of Groundnut Oil

European Union China Canada India Japan

2018-19 9.74 6.55 4.15 2.58 1.07

2019-20 9.70 6.47 4.20 2.58 1.08

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Mil

lio

n T

on

nes

Fig 4: Production Trend of Mustard Oil

5 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

C) Sunflower Oil

Source: United States Department of Agriculture

Ukraine was the largest producer followed by Russia and EU in 2018-19.

India’s share in global production of sunflower oil in 2018-19 was around 5.0 percent.

D) Soybean oil

Source: United States Department of Agriculture

China, United States, Argentina and Brazil were the key producers of Soybean oil in 2018-

19.

India’s share in global production of Soybean Oil in 2018 was around 3 percent.

Ukraine Russia European Union Argentina Turkey

2018-19 6.36 4.85 3.72 1.43 0.94

2019-20 6.24 5.12 3.76 1.42 0.90

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Mil

lio

n T

on

nes

Fig 5: Production Trend of Sunflower Oil

China United States Argentina Brazil European Union

2018-19 15.41 11.12 8.20 8.20 3.10

2019-20 15.41 11.13 8.80 8.39 3.04

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

Mil

lio

n T

on

nes

Fig 6: Production Trend of Soybean Oil

6 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

E) Palm Oil

Source: United States Department of Agriculture

Indonesia and Malaysia are major Palm oil producers in the world.

6. Major Exporting and Importing Countries of Edible Oils

A. Groundnut oil

Source: Comtrade

Argentina and Brazil were the top two exporting countries of Groundnut oil in 2018.

Indonesia Malaysia Thailand Colombia Nigeria

2018-19 41.50 20.50 2.90 1.63 1.02

2019-20 43 20.7 3 1.68 1.015

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

Mil

lio

n T

on

nes

Production Trend of Palm Oil

Argentina Brazil Senegal Nicaragua India

2017 0.083 0.049 0.019 0.019 0.013

2018 0.081 0.063 0.030 0.021 0.017

0.000

0.010

0.020

0.030

0.040

0.050

0.060

0.070

0.080

0.090

Mil

lio

n T

on

nes

Major Exporting Countries of Groundnut Oil

7 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

Source: Comtrade

China and Italy were the major importing countries of groundnut oil in 2018.

B. Mustard oil

Source: Comtrade

Canada was the largest exporter of Mustard oil in the world followed by Germany and

Russian Federation in 2018.

China ItalyUnited States of

AmericaBenin France

2017 0.11 0.05 0.02 0.02 0.01

2018 0.13 0.05 0.03 0.00 0.01

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

Mil

lio

n T

on

nes

Fig 9: Major Importing countries of Groundnut Oil

Canada GermanyRussian

FederationBelgium Czech Republic

2017 3.10 1.13 0.30 0.36 0.32

2018 3.26 0.90 0.47 0.32 0.26

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Mil

lin

To

nn

es

Fig 10: Major Exporting Countries of Mustard Oil

8 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

Source: Comtrade

The USA and China were the leading importing countries of Mustard oil in the world.

C. Sunflower oil

Source: Comtrade

Ukraine and Mozambique were the top two global exporters of sunflower oil during 2018.

United States of

AmericaChina Netherlands Norway Belgium

2017 1.99 0.76 0.60 0.46 0.38

2018 1.75 1.30 0.77 0.46 0.36

0.00

0.50

1.00

1.50

2.00

2.50M

illi

on

To

nn

es

Fig 11: Major Importing countries of Mustard Oil

Ukraine MozambiqueRussian

FederationArgentina Netherlands

2017 5.77 1.28 2.33 0.77 0.59

2018 5.59 1.11 2.10 0.71 0.62

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Mil

lio

n T

on

nes

Major Exporting countries of Sunflower Oil

9 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

Source: Comtrade

India was the largest importer of Sunflower oil followed by China, Italy, and Spain during

2018.

D. Soybean oil

Source: Comtrade

Argentina was the largest exporting country in the world followed by Brazil, USA and

Paraguay during 2017.

India China Italy Spain Turkey

2017 2.26 0.74 0.55 0.77 0.66

2018 2.43 0.70 0.61 0.52 0.50

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Mil

lio

n T

on

nes

Fig 13: Major Importing countries of Sunflower Oil

Argentina BrazilUnited States of

AmericaParaguay Netherlands

2017 4.97 1.34 1.07 0.68 0.52

2018 4.23 1.41 1.11 0.70 0.60

0.00

1.00

2.00

3.00

4.00

5.00

6.00

Mil

lio

n T

on

nes

Fig 14: Major Exporting countries of Soybean Oil

10 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

Source: Comtrade

India was the largest importer of soybean oil that constituted 27.89 percent of the global

import in the year 2017.

E. Palm oil

Source: Comtrade

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

exportation of Palm oil in the world.

India China Morocco Peru Colombia

2017 3.34 0.65 0.50 0.45 0.35

2018 2.97 0.55 0.53 0.50 0.34

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00M

illi

on

To

nn

es

Fig 15: Major Importing countries of Soybean Oil

Indonesia Malaysia Netherlands Colombia Germany

2017 22.88 9.88 1.38 0.55 0.38

2018 27.89 13.84 1.34 0.70 0.37

0.00

5.00

10.00

15.00

20.00

25.00

30.00

Mil

lio

n T

on

nes

Fig 16: Major Exporting countries of Palm Oil

11 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

Source: Comtrade

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

Netherland.

7. India’s import of major edible oils

(Qty in Lakh Tonnes)

Table 3:India’s Import of Major Edible Oils during 2013-14 to 2018-19

Year Soybean Oil Palm Oil Sunflower Oil Major Edible Oils

Crude Refined Crude Refined Crude Refined Crude Refined

2013-14 13.5 0.0 51.3 25.4 10.8 0.0 75.6 25.5

2014-15 23.2 0.0 69.7 11.9 17.1 0.0 110.0 11.9

2015-16 39.6 0.0 71.1 25.7 14.9 0.0 125.6 25.7

2016-17 34.6 0.0 53.6 29.4 17.3 0.0 105.5 29.4

2017-18 31.5 0.0 67.5 27.7 22.5 0.0 121.5 27.7

2018-19 31.7 0.3 64.2 25.2 25.8 2.0 124.5 25.6

2019-20

(Apr-Jul) 9.89 0.11 18.91 12.98 7.51 0.0 36.97 13.23

Source: Department of Commerce

(Value in Rs. Crores)

Table 4:India’s Import of Major Edible Oils during 2013-14 to 2018-19 Year Soybean Oil Palm Oil Sunflower Oil Major Edible Oils

Crude Refined Crude Refined Crude Refined Crude Refined

2013-14 8308 0.05 26440 12915 6882 1.62 41630 12917

2014-15 12908 0.11 33055 5839 9552 1.07 55515 5840

2015-16 19419 0.50 27409 10390 8323 1.04 55151 10392

2016-17 18703 3.80 26381 14708 9791 2.41 54875 14714

2017-18 16488 4.20 30851 12804 11857 2.66 59196 12811

2018-19 16373 16.71 25752 10881 13655 2.13 55780 10900

2019-20

(Apr-Jul) 4818 86.40 6875 5268 3791 0.94 15484 5355

Source: Department of Commerce

India imports substantial amount of edible oils for its domestic consumption. Among all

edible oils imported into India, Palm oil import share is around 60 percent.

India China Pakistan Netherlands Spain

2017 9.18 5.08 2.77 2.60 1.90

2018 8.81 5.33 2.96 2.60 1.93

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00M

illi

on

To

nn

es

Fig 17: Major Importing countries of Palm Oil

12 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

8. India’s top import sources of Palm, Soya and Sunflower Oils

Table 5: India’s Top Import Sources of Palm, Soya and Sunflower Oils during 2018

Edible Oils Import Source

Soybean Oil Argentina and Brazil

Palm Oil Indonesia and Malaysia

Sunflower Oil Ukraine and Argentina

Source: Department of Commerce

9. Movement of Domestic and International Edible Oils Prices

I. Groundnut oil

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

Domestic prices of Groundnut oil are showing rising trend from May, 2019.

63000

73000

83000

93000

103000

113000

123000

133000

143000

153000

Ap

r-1

2

Au

g-1

2

Dec

-12

Ap

r-1

3

Au

g-1

3

Dec

-13

Ap

r-1

4

Au

g-1

4

Dec

-14

Ap

r-1

5

Au

g-1

5

Dec

-15

Ap

r-1

6

Au

g-1

6

Dec

-16

Ap

r-1

7

Au

g-1

7

Dec

-17

Ap

r-1

8

Au

g-1

8

Dec

-18

Ap

r-1

9

Au

g-1

9

Rs

per

MT

Fig 18: Movement of Groundnut Oil Price

Domestic (Rajkot, Refined without GST) International (Any origin, cif Rotterdam)

13 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

II. Mustards 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.

III. Sunflower oil

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

45,000

55,000

65,000

75,000

85,000

95,000

105,000A

pr-

12

Au

g-1

2

Dec

-12

Ap

r-1

3

Au

g-1

3

Dec

-13

Ap

r-1

4

Au

g-1

4

Dec

-14

Ap

r-1

5

Au

g-1

5

Dec

-15

Ap

r-1

6

Au

g-1

6

Dec

-16

Ap

r-1

7

Au

g-1

7

Dec

-17

Ap

r-1

8

Au

g-1

8

Dec

-18

Ap

r-1

9

Au

g-1

9

Rs

per

MT

Movement of Mustard Oil Price

Domestic (Kota, Expeller without GST) International (Rapeseed oil (Dutch, fob ex-mill)

48000

53000

58000

63000

68000

73000

78000

83000

88000

93000

Ap

r-1

2

Au

g-1

2

Dec

-12

Ap

r-1

3

Au

g-1

3

Dec

-13

Ap

r-1

4

Au

g-1

4

Dec

-14

Ap

r-1

5

Au

g-1

5

Dec

-15

Ap

r-1

6

Au

g-1

6

Dec

-16

Ap

r-1

7

Au

g-1

7

Dec

-17

Ap

r-1

8

Au

g-1

8

Dec

-18

Ap

r-1

9

Au

g-1

9

Rs

per

MT

Movement of Sunflower Oil Price

Domestic (Chennai, Refined & Expeller with GST) International Sunflower oil (CIF Ukraine Origin)

14 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

Domestic prices of Sunflower oil are higher than the International prices throughout the

period.

IV. 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 the period.

V. Palm oil

Source: International landing Price at Kandla, Agriwatch.

International price of palm oils are showing a weak trend.

45000

50000

55000

60000

65000

70000

75000

80000

Ap

r-1

2

Au

g-1

2

Dec

-12

Ap

r-1

3

Au

g-1

3

Dec

-13

Ap

r-1

4

Au

g-1

4

Dec

-14

Ap

r-1

5

Au

g-1

5

Dec

-15

Ap

r-1

6

Au

g-1

6

Dec

-16

Ap

r-1

7

Au

g-1

7

Dec

-17

Ap

r-1

8

Au

g-1

8

Dec

-18

Ap

r-1

9

Au

g-1

9

Rs

per

MT

Fig 21: Movement of Soybean Oil Price

Domestic (Indore, Refined without GST) International(Soya oil CIF Argentina origin)

45000

50000

55000

60000

65000

70000

Rs

per

To

nn

es

Fig 22: Movement of Palm Oil Price

Palm Oil International prices at Kandla 5% FFA

15 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

10. Domestic future prices of Soya bean and Crude Palm oil

Unit: Rs/Quintal

Table – 6: Soya bean oil Future Prices

Contract

Month

As on

30.8.2019

Week

ago

23.8.2019

Month ago

30.7.2019

3 Months

ago

30.5.2019

6 Months

ago

28.2.2019

Year ago

30.8.2018

% Change

over

previous

year

Sep, 19 7555.00 7582.00 7355.00 7296.50 7405.00 7280.50 3.77

Oct, 19 7567.00 7587.00 7330.00 7296.50 7405.00 7280.00 3.94

Nov, 19 7590.00 7583.00 7330.50 7296.50 7405.00 7268.00 4.43

Source: National Commodity & Derivatives Exchange Limited

Domestic future price for Crude Soya bean oil is expected to show decrease over the price

previous year.

Unit: Rs/Quintal

Table – 7: Crude Palm oil Future Prices

Contract

Month

As on

30.8.2019

Week

ago

23.8.2019

Month

ago

30.7.2019

3 Months

ago

30.5.2019

6 Months

ago

28.2.2019

Year ago

30.8.2018

% Change

over

previous

year

Aug, 19 5516.00 5558.00 5147.00 5280.00 5720.00 5933.00 -7.03

Sep, 19 5652.00 5617.00 5175.00 5310.00 5720.00 5964.00 -5.23

Oct, 19 5695.00 5673.00 5200.00 5310.00 5720.00 6019.00 -5.38

Source: Multi Commodity Exchange of India Ltd

Domestic future price for Crude Palm oil is expected to decrease over the price in previous

year.

11. International future prices of Soya bean and Crude Palm Oil

Unit: USD/Ton

Table – 8: Soya bean Oil Future Prices

Contract

Month

As on

30.8.2019

Week ago

23.8.2019

Month

ago

30.7.2019

3 Months

ago

30.5.2019

6 Months

ago

28.2.2019

Year ago

30.8.2018

%

Change

over

previous

year

Sep, 19 631.40 624.78 626.99 617.51 681.00 623.46 1.27

Oct, 19 631.40 627.21 629.85 620.59 683.65 626.55 0.77

Dec, 19 635.15 632.72 635.59 627.43 688.50 632.06 0.49

Jan, 20 639.33 637.79 641.10 631.84 693.79 636.91 0.38

Source: CME Soybean Oil Prices

16 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

International future prices of Soya bean are expected to decrease over the last year.

Unit: USD/Ton

Table – 9: Crude Palm Oil Future Prices

Contract

Month

As on

30.8.2019

Week ago

23.8.2019

Month

ago

30.7.2019

3 Months

ago

30.5.2019

6 Months

ago

28.2.2019

Year ago

30.8.2018

% Change

over

previous

year

Sep, 19 509.72 525.55 491.63 500.12 539.44 534.71 -4.67

Oct, 19 524.41 533.91 500.61 504.17 540.67 542.75 -3.38

Nov, 19 530.57 538.68 509.10 507.99 540.43 547.38 -3.07

Source: BMD Malaysian Palm Oil Prices

International future prices of Palm oil are expected to decrease over the last year prices.

12. Trade Policy

12.1 Export Policy

At present, export of all varieties of edible oils is free, except mustard oil. Export of mustard

oil in branded consumer packs of upto 5 Kgs is permitted with a Minimum Export Price of USD

900 per MT. (DGFT’s Notification No 01/2015-202 dated 16th April, 2018)

12.2 Import Policy

At present, import of all varieties of edible oils is free without any quantitative restriction.

12.3 Duty structures of Edible oils

Major Edible oils Bound Duty Applied Duty

Crude Refined

Palm Oil 300% 44% 54%

Remaining Edible Oils 45/75/100/300% 35% 45% (except Olive Oil- 40%)

12.4 Status of Edible oils in different FTA/PTA

Major Edible oils Status in Major FTA/PTA

ASEAN Malaysia CECA

Palm Oil Crude- 40% and Refined- 50% Crude- 40% Refined- 50%*

Remaining Edible Oils No Duty Concession (except Olive Oil - 0%)

Source: DoC, Department of Revenue, Government of India and WTO

*After imposition of safeguard measures by DGTR vide Notification No 29/2019-Cutoms dated 04-09-2019

13. Significant Changes for the month

Hike in import duty on refined palm oil sourced from Malaysia from 45% to 50%.

Tariff-rate Quota (TRQ) for import of 30,000 MT of crude soya oil from Paraguay under

India-Mercosur Trade Agreement at import duty of 10%.

17 | C o m m o d i t y P r o f i l e o f E d i b l e O i l f o r S e p t e m b e r - 2 0 1 9

Disclaimer: The information and opinions contained in the document have been compiled from

various sources believed to be reliable. This Department will not be liable for any losses and

damages in connection with the uses of the information provided in the commodity profile.