Edible oil & Extractions Update

Monthly Report October 2021 | 1

J . M . B A X I & C O .

Monthly Report - OCTOber 2021

Edible oil & Extractions Update


Disclaimer: The information contained in this market update is drawn from wide range of newspapers, business and trade magazines, government, company and industry association websites. While all possible care is taken to verify the correctness and authenticity of information contained in this compilation, no claim to independent authorship of articles is implied or intended. Readers are expected to make their own independent evaluation and verification of information for their use. While all information contained in this report are believed to be correct, the editors of this compilation or J.M.Baxi & Co. do not guarantee the quotes or other data and the same is provided only in good faith.

TABLE OF CONTENTS

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Roadmap for implementing palm oil scheme finalised: Arunachal CM

Import duty reduction has not helped govt, consumers

Centre to hold meeting with states to review edible oil stock holding order


PORTANALYSIS

Edible oil and Extraction Traffic at Indian Ports (Qty in Million Tonnes)


Port Name Apr- Aug - 21 Apr - Aug - 20 Variance Y-O-Y

ANGRE 0 0.031 -0.031

BUDGE BUDGE 0.099 0.135 -0.036

CHENNAI 0.358 0.333 0.025

HALDIA 1.02 1.035 -0.015

HAZIRA 0.135 0.099 0.035

JNPT 0.475 0.655 -0.179

KAKINADA 0.408 0.347 0.06

KANDLA 1.932 2.013 -0.082

KARWAR 0.074 0.077 -0.003

KRISHNAPATNAM 0.687 0.612 0.075

MAGDALLA 0.032 0 0.032

MANGALORE 0.353 0.245 0.107

MUMBAI 0.032 0.006 0.027

MUNDRA 0.45 0.376 0.074

NAGAPATTINAM 0.015 0 0.015

PARADIP 0.017 0.031 -0.014

TUTICORIN 0.097 0.12 -0.023

Grand Total 6.183 6.206 -0.023


COUNTRY - WISE EDIBLE OIL IMPORTS IN INDIASEPTEMBER 2021(Qty in Million Tonnes)

COUNTRY CARGO SEP-21

ARGENTINA CRUDE DEGUMMED SOYABEAN OIL 0.158

CRUDE SOYABEAN OIL 0.052

CRUDE SUN FLOWER OIL 0.009

CRUDE SUNFLOWER SEED OIL 0.019

SUNFLOWER SEED OIL 0.065

BRAZIL CRUDE DEGUMMED SOYABEAN OIL 0.019


FRANCE CASTOR OIL 0.003

INDONESIA CRUDE PALM OIL 0.512

CRUDE PALM OLEIN 0.023

PALM FATTY ACID 0.019

PALM OIL 0.025

RBD PALMOLEIN 0.21

ITALY CRUDE DEGUMMED SOYABEAN OIL 0.006

MALAYSIA CRUDE PALM OIL 0.302


PALM OIL 0.044

RBD PALM KERNEL OIL 0.008

RBD PALMOLEIN 0.048

PAPUA NEW GUINEA CRUDE PALM OIL 0.017

RUSSIA CRUDE SUN FLOWER OIL 0.013


SINGAPORE CRUDE PALM OIL 0.008

RBD PALMOLEIN 0.006


THAILAND CRUDE PALM KERNEL OIL 0.006

CRUDE PALM OIL 0.064

U.A.E. CRUDE DEGUMMED RAPESEED OIL 0.013

UKRAINE CRUDE DEGUMMED RAPESEED OIL 0.008



VIETNAM CRUDE DEGUMMED SOYABEAN OIL 0.009


MAJORIMPORTERS OF EDIBLE OIL SEPTEMBER 2021(Qty in Million Tonnes)

Importers Cargo Sep-21

3F INDUS. LTD. CRUDE PALM OIL 0.027

CRUDE PALM STEARIN 0.002

RBD PALMOLEIN 0.001

REFINE PALM STEARENE 0.001

ADANI WILMAR LTD. CRUDE DEGUMMED SOYABEAN OIL 0.021


CRUDE SOYABEAN OIL 0.052


RBD PALMOLEIN 0.044

ANA OILS & FATS INDIA PVT. LTD. CRUDE DEGUMMED SOYABEAN OIL 0.002


RBD PALMOLEIN 0.002

EMAMI AGROTECH LTD. CRUDE PALM OIL 0.163

RBD PALMOLEIN 0.02

FRIGORIFICO ALLANA PVT. LTD. CRUDE DEGUMMED SOYABEAN OIL 0.016

CRUDE PALM KERNEL OIL 0.003


GEMINI EDIBLES AND FATS INDIA PVT. LTD. CRUDE DEGUMMED SOYABEAN OIL 0.005


CRUDE PALM STEARIN 0.001



RBD PALMOLEIN 0.01

GOKUL AGRO RESOURCES LTD. CRUDE PALM OIL 0.04


RAPE SEED OIL 0.001

RBD PALMOLEIN 0.048

RBD PALMOLEIN IV 58 0.018

MANTORA OIL PRODUCTS PVT. LTD. CRUDE DEGUMMED SOYABEAN OIL 0.008


RBD PALMOLEIN 0.011

RUCHI SOYA INDUS. LTD. CRUDE DEGUMMED SOYABEAN OIL 0.003


PALM OIL 0.008

RBD PALMOLEIN 0.024

SANTHOSHIMATA EDIBLE OILS REFINERY PVT. LTD. CRUDE PALM OIL 0.038

RBD PALMOLEIN 0.003

SOUTH INDIA KRISHNA OILS AND FATS PVT. LTD. CRUDE PALM OIL 0.03

RBD PALMOLEIN 0.005

VARIOUS RECEIVERS CRUDE DEGUMMED SOYABEAN OIL 0.05

CRUDE PALM OIL 0.01



RBD PALMOLEIN 0.002

VITERA INDIA PVT. LTD. CRUDE DEGUMMED RAPESEED OIL 0.008

CRUDE DEGUMMED SOYABEAN OIL 0.028

VITERRA INDIA PVT. LTD. SUNFLOWER SEED OIL 0.065



Market OverviewAnd Trends


HIGHLIGHTSHIGHLIGHTS

• Roadmap for implementing palm oil scheme finalised: Arunachal CM

• Import duty reduction has not helped govt, consumers

• Centre to hold meeting with states to review edible oil stock holding order


Arunachal Pradesh Chief Minister Pema Khandu on

Tuesday said the State has finalised the roadmap

for implementing the ambitious National Mission

on Edible Oils-Oil Palm (NMEO-OP) and it will

be implemented soon. Speaking at the ‘Business

Summit for North Eastern States’ on the national

mission at Guwahati, he said Arunachal Pradesh,

geographically the largest state in North East, has

about 1.33 lakh hectares of land feasible for oil

palm cultivation as assessed by a central team in

2019. “Based on the assessment, we have identified

Roadmap for implementing palm oil scheme finalised: Arunachal CM

• Arunachal Pradesh has 1.33 lakh hectares of

land feasilble for oil palm cultivation

the lands, farmers and developers. We will go full

swing in implementing the mission very soon,”

Khandu said. He termed the summit as a game-

changing platform for the North-East and hailed

the Centre for focussing on sectors that would

usher accelerated development in the region,

according to a CMO statement. The State already

has about 4,250 hectares under oil palm cultivation,

the Chief Minister said. “Farmers didn’t expand

their cultivation, saying there were no processing

factories while the private companies said without

expansion of cultivation sites, establishment

of factories wasn’t feasible. This cost an earlier

scheme. But under the new National Mission, things

have changed. Under it, both our farmers and

private investors will be in a win-win situation,” he

said.The Centre has rolled out the NMEO-OP with

an outlay of `11,040 crore.

Source: The Hindu Business Line


time to time. Stating that futures trade is a necessity for price discovery and helps industry and farmers, he said shooting the messenger can never be the solution to bring down prices as has been amply demonstrated after this action.

Oilseeds productionOn the oilseeds production estimate, Chaturvedi said initial reports of rebounding kharif oilseed production and prospects of a very high acreage of rabi mustard are a silver lining in this relentless bull run in edible oils. Initial reports emanating from mustard growing regions indicate that farmers are sufficiently enthused with high prices and diverting land meant for other crops. He said SEA’s team, which conducted groundnut crop survey in Gujarat recently, estimated a crop of 38.55 lakh tonnes (lt) in the State alone. Indian Oilseed and Produce Export Promotion Council has estimated all India groundnut kharif crop at 82.0 lt. This, coupled with the assessment of Soyabean Processors’ Association of India of 118.9 lt for soya, the oilseed crushing industry should have adequate supply of raw material during the year, he said.

National MissionOn the National Mission on oilseeds, he said the recent bull run in edible oil prices should sound alarm bells for decision makers and galvanise them into taking proactive action on the Prime Minister’s ‘Aatmanirbharta’ project in edible oils. “It is surprising that thrust on oilseed development is still a low priority even though our dependence on imports is close to 65 per cent and import bill ballooning,” he said. The government has announced ₹11,000 crore investment in oil palm project. However, oil palm has very long gestation of around six years and cannot be the only answer to augmenting edible oil supplies. “With countries becoming more and more inward looking, it is high time we wake up and encourage oilseeds such as groundnut, soya and mustard in mission mode or else our edible oil security would remain highly compromised,” he said.


In a letter to its members, Atul Chaturvedi, SEA President, said with edible oil prices relentlessly marching northwards, the government made matters worse by reducing import duty on crude soya and sunflower oil to nil and on refined oils to 17.5 per cent. “While we understand and sympathise with the dilemma of policy makers, we have been saying time and again that during times of scarcity and our continued heavy dependence on imports this move would actually end up being counterproductive. “Our worst fears have once again proved right as import values have gone up significantly and negated the full impact of duty reduction. Government has lost revenue without the consumers getting any relief,” he said On the government’s order to monitor the stock of oil and oilseeds, he said the government has issued an order that the States should set the limit for the stock of oils and oilseeds that a trader or an industry can hold. He said Sudhanshu Pandey, Secretary Food and Public Distribution, recently interacted with the industry to understand the difficulty faced by the industry for declaring the stocks held by each company. “It looks many State governments are reluctant and yet to notify the stock limit in their respective States,” he said.

MustardChaturvedi said the runaway price of rapeseed-mustard had compelled SEBI to instruct NCDEX to stop issuing new contract in futures and options for rapeseed-mustard with effect from October 8, and permitted only squaring up existing positions aiming to cool down the prices. He said this situation would not have arisen had SEBI/NCDEX taken measures initially by imposing margin/circuit breaker etc from

Import duty reduction has not helped govt, consumers

• Says move will prove to be counterproductive

• The Centre has lost revenue even without

consumers getting any relief from the

recent reduction of import duties on edible

oils, according to the Solvent Extractors

Association of India (SEA).


created to monitor the stock of edible oils/oilseeds

on a weekly basis in the country. The department

noted that the demand of edible oils varies in different

states/UTs as per the preference of the consumers.

"However, for finalizing the stock limit quantity of

edible oils and oilseeds, the states/UTs may consider/

explore the previous stock limit imposed for edible

oils and oilseeds by the state/UTs," the department

said. Any stakeholder (refiners, miller, wholesaler etc.)

should not hold the stocks in excess of two months

of the storage capacity, it suggested the states. "For

guidance states may prefer to indicative limits which

may have been imposed by states earlier...," the

statement said. As an example, the Department said

that, for refiners, stocks of maximum of 2 months of

the average scale of last six months could be used.

Similarly, quantities for extractors/millers should be

fixed. On Friday, the Centre said it was hopeful that

key oilseeds- and edible oil-producing states would

start imposing stock limits from the next week. The

average retail price of mustard oil on Friday was ruling

at Rs 185.55 per kg, groundnut oil at Rs 182.86 per

kg, sunflower oil at Rs 168.21 per kg, soya oil at Rs

154.91 per kg, vanaspati at Rs 138.31 per kg and palm

oil at Rs 132.64 per kg. Prices have fallen by Rs 3-4

per kg following the recent cut in import duty. During

November 2020 to September 2021 (11 months),

the imports of vegetable oils increased 2 per cent to

1,24,70,784 tonnes compared to 1,22,57,837 tonnes

in the corresponding period of the previous year Out

of the total vegetable oil imports, edible oil imports

rose to 1,20,85,247 tonnes from 1,19,50,501 tonnes.

Non-edible oils rose to 3,85,537 tonnes from 3,07,333

tonnes. Vegetable oils marketing year runs from

November to October. Indonesia and Malaysia are the

major suppliers of refined palmolein and crude palm

oil to India. India imports crude soybean oil mainly

from Argentina and Brazil, while crude sunflower oil is

shipped from Ukraine, Russia and Argentina.


The Centre on Sunday said it is monitoring the prices

of cooking oils as demand rises during the festive

season and will hold a virtual meeting with states

on October 25 to review action taken by them on its

stock holding limit order. On October 10, the Centre

had imposed stock limits on traders of edible oils and

oilseeds, barring certain importers and exporters,

till March 31, in a bid to control domestic prices and

provide relief to consumers. State governments and

union territories were to decide the stock limit to

be imposed on edible oils and oilseeds after taking

into account the available stock and consumption

pattern of that particular state or UT. According to an

official statement, the Department of Food and Public

Distribution will be meeting all States/UTs on Monday,

October 25, 2021, through video conferencing to

"review the action taken on the stock limit order on

edible prices."

In a letter written to all states by Union Food Secretary

Sudhanshu Pandey on Friday, the department outlined

initiatives taken by the Centre to ease prices of edible

oils for the relief of consumer and keeping the festive

season in mind. The department is "monitoring the

prices of edible oils" as well as the domestic supply,

the statement said. "This is especially important to

the context of the upcoming festival season in which

demand of edible oils will increase," it added. The

Centre has already taken various steps to cool down

the high prices, including sharp reduction in import

duties of palm oil, sunflower oil and soyabean oil.

That apart, the department said that stock disclosure

notification has been issued and a web portal has been

Centre to hold meeting with states to review edible oil stock holding order

• Centre said it is monitoring prices of cooking

oils as demand rises during festive season

and will hold a virtual meeting with states

on October 25 to review action on its stock

holding limit order


Reports for October 2021

J. M. Baxi & Co. Monthly Agri Products Update

J. M. Baxi & Co. Monthly Automotive Logistics Update

J. M. Baxi & Co. Monthly Cement Update

J. M. Baxi & Co. Monthly Chemical Update

J. M. BAXI & CO. Monthly Coal Update

J. M. BAXI & CO. Monthly Container Update

J. M. BAXI & CO. Monthly Cruise Shipping Update

J. M. BAXI & CO. Monthly Edible oil and Extractions Update

J. M. BAXI & CO. Monthly Fertilizer Update

J. M. BAXI & CO. Monthly Mineral and Metal Update

J. M. Baxi & Co. Monthly Oil and Petroleum Update

J. M. Baxi & Co. Monthly Port Update

J. M. BAXI & CO. Monthly Project Cargo Update

J. M. BAXI & CO. Monthly Seafarers Insights Update

J. M. Baxi & Co. Monthly Steel Update


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Edible oil & Extractions Update

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