As on 21.11.

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 in recent month ............................................................................................ 16

1|Commodity Profile of Edible Oil for September - 2019

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

(Unit: Million Tonnes)

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 14.10** DOC
24.97 24.98 Availability 24.16
0.84 0.75 Export and Industrial use 0.75 DVVOF
Total Available for domestic
24.13 24.23 23.41
consumption
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-Sep, 2018-19.
Availability: Domestic production plus Imports;
Total Availability for Domestic Consumption: Availability minus export and Industrial use.

2. Production Trend of Domestic Oilseeds

Figure 1: Production Trend of Domestic Oilseeds

16
14
Million Tonnes

12
10
8
6
4
2
0

Groundnut Rapeseed Soyabean Sunflower

Source: Directorate of Economics and Statistics

• India’s Soybean production has increased in the last 10 years at CAGR of 3.7 percent.
• Groundnut production is estimated to be 6.69 Million Tonnes in 2018-19 as compared to
9.17 Million Tonnes in 2017-18 showing a fall of around 27%.

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3. Production Trend of Domestic Edible Oils

Figure 2: Production Trend of Domestic Edible Oils

3.5
3
Million Tonnes

2.5
2
1.5
1
0.5
0

Groundnut Oil Rapeseed Oil Soyabean Oil Sunflower Oil

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

• Soybean oil production has increased in the last 10 years at CAGR of 3.7 percent.
• Rapeseed oil production was 2.89 Million MT in 2018-19.

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

Global India’s
Major Exporters/ Importers
Edible Oil Production Production
(2018-19)
(2019-20) (2019-20)

Exporters: Argentina, Brazil, Senegal

Ground nut oil 5.93 1.13
Importers: China, Italy, USA
Exporters: Canada, Germany, Russia
Mustard oil 27.43 2.58
Importers: USA, China, Netherland
Exporters: Ukraine, Russia, Netherland
Sunflower oil 19.86 0.07
Importers: India, China, Iran
Exporters: Argentina, Brazil, USA
Soybean oil 57.20 1.75
Importers: India, Bangladesh, Algeria
Exporters: Indonesia, Malaysia, Netherland
Palm oil 76.01 0.20
Importers: India, China, Pakistan
Source: Global Production: USDA, India’s Production: DVVOF, Exporters & Importers: Comtrade

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5. Global Production Trend of Major Edible Oils
A) Groundnut oil

Fig 3: Production Trend of Groundnut Oil

3.50
3.00
Million Tonnnes

2.50
2.00
1.50
1.00
0.50
0.00
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

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

Fig 4: Production Trend of Mustard Oil

12.00

10.00
Million Tonnes

8.00

6.00

4.00

2.00

0.00
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

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.

4|Commodity Profile of Edible Oil for September - 2019

 C) Sunflower Oil

Fig 5: Production Trend of Sunflower Oil

7.00
6.00
Million Tonnes

5.00
4.00
3.00
2.00
1.00
0.00
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 1.41 0.90

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

Fig 6: Production Trend of Soybean Oil

18.00
16.00
14.00
Million Tonnes

12.00
10.00
8.00
6.00
4.00
2.00
0.00
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

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.

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 E) Palm Oil

Production Trend of Palm Oil

50.00
45.00
40.00
Million Tonnes

35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
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

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

Major Exporting Countries of Groundnut Oil

0.090
0.080
0.070
Million Tonnes

0.060
0.050
0.040
0.030
0.020
0.010
0.000
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

Source: Comtrade

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

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 Fig 9: Major Importing countries of Groundnut Oil
0.14
0.12
Million Tonnes

0.10
0.08
0.06
0.04
0.02
0.00
United States of
China Italy Benin France
America
2017 0.11 0.05 0.02 0.02 0.01
2018 0.13 0.05 0.03 0.00 0.01

Source: Comtrade

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

B. Mustard oil

Fig 10: Major Exporting Countries of Mustard Oil

3.50
3.00
Millin Tonnes

2.50
2.00
1.50
1.00
0.50
0.00
Russian
Canada Germany Belgium Czech Republic
Federation
2017 3.10 1.13 0.30 0.36 0.32
2018 3.26 0.90 0.47 0.32 0.26

Source: Comtrade

• Canada was the largest exporter of Mustard oil in the world followed by Germany and
Russian Federation in 2018.

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 Fig 11: Major Importing countries of Mustard Oil
2.50

2.00
Million Tonnes

1.50

1.00

0.50

0.00
United States of
China Netherlands Norway Belgium
America
2017 1.99 0.76 0.60 0.46 0.38
2018 1.75 1.30 0.77 0.46 0.36

Source: Comtrade

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

C. Sunflower oil

Major Exporting countries of Sunflower Oil

7.00

6.00

5.00
Million Tonnes

4.00

3.00

2.00

1.00

0.00
Russian
Ukraine Mozambique Argentina Netherlands
Federation
2017 5.77 1.28 2.33 0.77 0.59
2018 5.59 1.11 2.10 0.71 0.62

Source: Comtrade

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

8|Commodity Profile of Edible Oil for September - 2019

 Fig 13: Major Importing countries of Sunflower Oil
3.00

2.50
Million Tonnes

2.00

1.50

1.00

0.50

0.00
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

Source: Comtrade

• India was the largest importer of Sunflower oil followed by China, Italy, and Spain during
2018.

D. Soybean oil

Fig 14: Major Exporting countries of Soybean Oil

6.00
5.00
Million Tonnes

4.00
3.00
2.00
1.00
0.00
United States of
Argentina Brazil Paraguay Netherlands
America
2017 4.97 1.34 1.07 0.68 0.52
2018 4.23 1.41 1.11 0.70 0.60

Source: Comtrade

• Argentina was the largest exporting country in the world followed by Brazil, USA and
Paraguay during 2017.

9|Commodity Profile of Edible Oil for September - 2019

 Fig 15: Major Importing countries of Soybean Oil
4.00
3.50
3.00
Million Tonnes

2.50
2.00
1.50
1.00
0.50
0.00
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

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

Fig 16: Major Exporting countries of Palm Oil

30.00

25.00
Million Tonnes

20.00

15.00

10.00

5.00

0.00
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

Source: Comtrade

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

exportation of Palm oil in the world.

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 Fig 17: Major Importing countries of Palm Oil
10.00
9.00
8.00
Million Tonnes

7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
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

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
16.8 0.2 30.2 19.0 10.8 0 57.8 19.2
(Apr-Sep)
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
8178 154 10963 7714 5556 1.27 24697 7869
(Apr-Sep)
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.

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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

Fig 18: Movement of Groundnut Oil Price

153000
143000
133000
Rs per MT

123000
113000
103000
93000
83000
73000
63000
Dec-15
Dec-12

Dec-13
Apr-14

Dec-14

Dec-16

Dec-17

Dec-18
Aug-12

Aug-13

Aug-14

Aug-15

Aug-16

Aug-17

Aug-18

Aug-19
Apr-12

Apr-13

Apr-15

Apr-16

Apr-17

Apr-18

Apr-19

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

• Domestic prices of Groundnut oil are showing rising trend from August, 2018.

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 II. Mustards Oil

Fig 19: Movement of Mustard Oil Price

105,000

95,000

85,000
Rs per MT

75,000

65,000

55,000

45,000
Dec-12

Dec-13

Dec-14

Dec-15

Dec-16

Dec-17

Dec-18
Apr-12
Aug-12

Apr-13
Aug-13

Apr-14
Aug-14

Apr-15
Aug-15

Apr-16
Aug-16

Apr-17
Aug-17

Apr-18
Aug-18

Apr-19
Aug-19
Domestic (Kota, Expeller without GST) International (Rape oil (Dutch, fob ex-mill)

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

Movement of Sunflower Oil Price

93000
88000
83000
78000
Rs per MT

73000
68000
63000
58000
53000
48000
Dec-14
Dec-12

Aug-13
Dec-13

Dec-15

Dec-16

Dec-17

Dec-18
Aug-12

Aug-14

Aug-15

Apr-16
Aug-16

Aug-17

Aug-18

Aug-19
Apr-12

Apr-13

Apr-14

Apr-15

Apr-17

Apr-18

Apr-19

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

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

• Domestic prices of Sunflower oil are higher than the International prices throughout the
period.
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IV. Soybean oil

Fig 21: Movement of Soybean Oil Price

80000
75000
70000
Rs per MT

65000
60000
55000
50000
45000

Dec-17
Dec-12

Dec-13

Dec-14

Dec-15

Dec-16

Dec-18
Aug-12
Apr-12

Apr-13
Aug-13

Apr-14
Aug-14

Apr-15
Aug-15

Apr-16
Aug-16

Apr-17
Aug-17

Apr-18
Aug-18

Apr-19
Aug-19
Domestic (Indore, Refined without GST) International(Soya oil CIF Argentina origin)

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

Fig 22: Movement of Palm Oil Price

70000

65000
Rs per Tonnes

60000

55000

50000

45000

Palm Oil International prices at Kandla 5% FFA

Source: International landing Price at Kandla, Agriwatch.

• International price of palm oils are showing a weak trend.

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10. Domestic future prices of Crude Soya bean and Crude Palm oil
Unit: Rs/Quintal
Table – 6: Soya bean oil Future Prices
% Change
Week Month 3 Months 6 Months Year
Contract As on over
ago ago ago ago ago
Month 14.11.2019 previous
7.11.2019 14.10.2019 14.8.2019 14.5.2019 14.11.2018
year
Nov,19 7,998.00 7,885.00 7,544.00 7,487.00 7,220.50 7,437.00 7.54
Dec,19 8,037.50 7,917.00 7,553.50 7,487.00 7,220.50 7,368.00 9.09
Jan,20 8,046.00 7,927.00 7,557.50 7,487.00 0.00 7,377.00 9.07
Source: National Commodity & Derivatives Exchange Limited

• Domestic future price for Crude Soya bean oil is expected to increase over the price in
previous year.

Unit: Rs/Quintal
Table – 7: Crude Palm oil Future Prices
% Change
Month 3 Months 6 Months Year
Contract As on Week ago over
ago ago ago ago
Month 14.11.2019 7.11.2019 previous
14.10.2019 14.8.2019 14.5.2019 14.11.2018
year
Nov,19 6,459.00 6,198.00 5,482.00 5,570.00 0.00 5,287.00 22.17
Dec,19 6,504.00 6,227.00 5,514.00 5,590.00 0.00 5,295.00 22.83
Jan,20 6,456.00 6,194.00 5,510.00 0.00 0.00 5,333.00 21.06
Source: Multi Commodity Exchange of India Ltd

• Domestic future price for Crude Palm oil is expected to increase 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
% Change
Month 3 Months 6 Months Year
Contract As on Week ago over
ago ago ago ago
Month 14.11.2019 7.11.2019 previous
14.10.2019 14.8.2019 14.5.2019 14.11.2018
year
Dec,19 678.58 692.91 661.38 651.46 610.67 607.81 11.64
Jan,20 682.76 697.76 666.67 656.75 615.30 612.44 11.48
Mar,20 688.72 703.49 672.62 662.70 621.70 618.83 11.29
May,20 695.99 710.32 679.24 668.88 589.29 625.67 11.24
Source: CME Soybean Oil Prices

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

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 Unit: USD/Ton
Table – 9: Crude Palm Oil Future Prices
6 Months % Change
Week ago Month 3 Months Year ago
Contract As on ago over
ago ago
Month 30.8.2019 previous
23.8.2019 30.7.2019 30.5.2019 30.8.2018
28.2.2019 year
Dec,19 615.83 598.46 516.28 540.28 516.91 440.34 39.85
Jan,20 627.38 610.52 527.76 545.30 529.62 470.38 33.38
Feb,20 633.87 617.04 538.54 548.89 538.98 486.59 30.27
Source: BMD Malaysian Palm Oil Prices

• International future prices of Palm oil are expected to increase 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

Applied Duty
Major Edible oils Bound 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

Status in Major FTA/PTA
Major Edible oils
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 in recent 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%.

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.

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