News&Events
21.01.2024
The Indian government on Tuesday extended lower import duty on edible oil by a year, till March 2025. The lower import duty structure on crude palm oil, crude sunflower oil, and crude soy oil was originally set to expire in March, this year.
India is the world's biggest importer of vegetable oil. The basic import duty on refined soyabean oil and sunflower oil was cut to 12.5% from 17.5%, in June last year. India imports palm oil mainly from Indonesia and Malaysia, and a small quantity of crude soft oil, including soybean from Argentina. Sunflower oil is imported from Ukraine and Russia.
"The decision was expected as the government is keen to keep prices in check ahead of elections," Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage told news agency Reuters. "The notification is not changing the current duty structure. So, there won't be any impact on local prices or import patterns," Bajoria said.
The government also imposed a 50% duty on exports of molasses, a by-product of sugarcane used as raw material for alcohol production, with effect from January 18. A finance ministry notification said molasses resulting from the extraction or refining of sugar will attract a 50% export duty.
According to industry data issued on Friday, India's edible oil imports fell 16 per cent on an annual basis in December to 13.07 lakh tonnes as a result of decreased shipments of crude and refined palm oils. According to data from the Solvent Extractors' Association of India (SEA), edible oil imports decreased from 15,55,780 tonnes in December of the previous year to 13,07,686 tonnes.
Within the edible oil category, imports of crude palm oil fell to 6,20,020 tonnes from 8,43,849 tonnes, while inbound shipments of RBD Palmolein (Refined Bleached Deodorised) dipped slightly to 2,51,667 tonnes from 2,56,398 tonnes.
India is the world's biggest importer of vegetable oil. The basic import duty on refined soyabean oil and sunflower oil was cut to 12.5% from 17.5%, in June last year. India imports palm oil mainly from Indonesia and Malaysia, and a small quantity of crude soft oil, including soybean from Argentina. Sunflower oil is imported from Ukraine and Russia.
"The decision was expected as the government is keen to keep prices in check ahead of elections," Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage told news agency Reuters. "The notification is not changing the current duty structure. So, there won't be any impact on local prices or import patterns," Bajoria said.
The government also imposed a 50% duty on exports of molasses, a by-product of sugarcane used as raw material for alcohol production, with effect from January 18. A finance ministry notification said molasses resulting from the extraction or refining of sugar will attract a 50% export duty.
According to industry data issued on Friday, India's edible oil imports fell 16 per cent on an annual basis in December to 13.07 lakh tonnes as a result of decreased shipments of crude and refined palm oils. According to data from the Solvent Extractors' Association of India (SEA), edible oil imports decreased from 15,55,780 tonnes in December of the previous year to 13,07,686 tonnes.
Within the edible oil category, imports of crude palm oil fell to 6,20,020 tonnes from 8,43,849 tonnes, while inbound shipments of RBD Palmolein (Refined Bleached Deodorised) dipped slightly to 2,51,667 tonnes from 2,56,398 tonnes.
21.01.2024
Sunflower, Soyabean oil prices rise amid shipping delays
Kolkata: Prices of sunflower and soyabean oils have increased by 10% and 5%, respectively in the last fortnight due to shipment delays amid the ongoing Red Sea crisis, trade insiders said.
Shipments of the two soft oils that are mostly consumed in the country during the winter season are delayed by a month as container shipping giants, including Maersk and Hapag-Lloyd, are taking a longer route around Africa due to attacks on commercial vessels by Houthi militants in Yemen in the Red sea.
Also, the Black Sea, through which sunflower oil comes from Ukraine and Russia, is frozen, causing delays and increasing costs, trade insiders said.
“The ports are not operating full-fledged in the Black Sea and, therefore, there is a delay in the arrival of sunflower oil,” said Pradeep Chowdhry, managing director of Gemini Edibles & Fats India.
Traders do not expect the prices to come down immediately as the shipping problems that they have been facing since last month are likely to continue.
“Prices have firmed up and going ahead, we do not see an immediate drop in prices. Rather, prices may go up further,” Chowdhry said.
In fact, with Malaysia – one of the major exporters of palm oil to India – reporting a decline in palm oil inventories, overall edible oil prices may increase in the coming months if the current trend continues, industry insiders said.
India annually imports 14.5-15 million tonnes of edible oils. Of this, 9 million tonnes are palm oil and the rest are sunflower and soyabean oil.
India depends on imported oil as its own production cannot meet the domestic demand of 21-22 million tonnes annually.
While palm oil is imported from Southeast Asian nations of Malaysia and Indonesia, India depends on countries like Russia, Ukraine and Argentina for sunflower oil, and on Brazil for supply of soyabean oil.
Importers said the import price of sunflower oil has shot up by $50 per tonne to $960 per tonne in the last two weeks, which will impact its domestic prices.
If imports are diverted through other routes, then the arrival time of sunflower oil from the Russia-Ukraine region will go up to 40 days instead of 28 days, said Sandeep Bajoria, CEO of Sunvin Group, an edible oil importer.
“Though there is a good supply of edible oils in the Indian markets, the delay and price rise in imported oil will have to be passed on to the consumers by the edible oil companies,” he said.
In the case of palm oil, data from Malaysian Palm Oil Board shows that inventories have declined 4.64% in a month to reach the lowest level since August at 2.29 million metric tonnes as of December end. There was a substantial drop of 13.31% in crude palm oil inventories as well last month, totalling 1.55 million metric tonnes...
Shipments of the two soft oils that are mostly consumed in the country during the winter season are delayed by a month as container shipping giants, including Maersk and Hapag-Lloyd, are taking a longer route around Africa due to attacks on commercial vessels by Houthi militants in Yemen in the Red sea.
Also, the Black Sea, through which sunflower oil comes from Ukraine and Russia, is frozen, causing delays and increasing costs, trade insiders said.
“The ports are not operating full-fledged in the Black Sea and, therefore, there is a delay in the arrival of sunflower oil,” said Pradeep Chowdhry, managing director of Gemini Edibles & Fats India.
Traders do not expect the prices to come down immediately as the shipping problems that they have been facing since last month are likely to continue.
“Prices have firmed up and going ahead, we do not see an immediate drop in prices. Rather, prices may go up further,” Chowdhry said.
In fact, with Malaysia – one of the major exporters of palm oil to India – reporting a decline in palm oil inventories, overall edible oil prices may increase in the coming months if the current trend continues, industry insiders said.
India annually imports 14.5-15 million tonnes of edible oils. Of this, 9 million tonnes are palm oil and the rest are sunflower and soyabean oil.
India depends on imported oil as its own production cannot meet the domestic demand of 21-22 million tonnes annually.
While palm oil is imported from Southeast Asian nations of Malaysia and Indonesia, India depends on countries like Russia, Ukraine and Argentina for sunflower oil, and on Brazil for supply of soyabean oil.
Importers said the import price of sunflower oil has shot up by $50 per tonne to $960 per tonne in the last two weeks, which will impact its domestic prices.
If imports are diverted through other routes, then the arrival time of sunflower oil from the Russia-Ukraine region will go up to 40 days instead of 28 days, said Sandeep Bajoria, CEO of Sunvin Group, an edible oil importer.
“Though there is a good supply of edible oils in the Indian markets, the delay and price rise in imported oil will have to be passed on to the consumers by the edible oil companies,” he said.
In the case of palm oil, data from Malaysian Palm Oil Board shows that inventories have declined 4.64% in a month to reach the lowest level since August at 2.29 million metric tonnes as of December end. There was a substantial drop of 13.31% in crude palm oil inventories as well last month, totalling 1.55 million metric tonnes...
21.01.2024
India's December palm oil imports jump to 4-month high
India's palm oil imports surged to their highest in four months in December, driven by increased purchases of refined palmolein due to competitive prices, a leading trade body said on Friday.
Higher purchases by the world's biggest importer of vegetable oils could help lower palm oil stocks in top producers Indonesia and Malaysia and support benchmark futures .
The Solvent Extractors' Association of India (SEA) reported a 2.8% rise in December palm oil imports to 894,186 metric tons, with refined palm oil imports soaring by 47% to 251,667 tons.
The negative refining margin for crude palm oil in India, coupled with lower prices offered by exporting countries for refined palm oil, made it an attractive option for buyers.
The landed cost of refined bleached deodorised (RBD) palmolein at Mumbai port was approximately $25 per ton lower than crude palm oil, dealers said.
In addition to palm oil, sunflower oil imports more than doubled in December, reaching 260,850 tons, the highest in three months.
This, along with increased palm oil imports, contributed to a 12.9% month-on-month rise in India's total vegetable oil imports to 1.31 million metric tons.
Soyoil imports in December rose by 1.8% to 152,650 tons, although significantly below the average imports of 306,000 tons in the last marketing year.
Negative refining margins and a higher premium over rival oils were cited as contributing factors.
"Even in January, we could witness higher imports of refined palm oil because of lower prices. Total palm oil imports could rise above 900,000 tons," said a Mumbai-based trader.
India sources palm oil primarily from Indonesia, Malaysia, and Thailand, while soyoil and sunflower oil imports come from Argentina, Brazil, Russia and Ukraine.
Higher purchases by the world's biggest importer of vegetable oils could help lower palm oil stocks in top producers Indonesia and Malaysia and support benchmark futures .
The Solvent Extractors' Association of India (SEA) reported a 2.8% rise in December palm oil imports to 894,186 metric tons, with refined palm oil imports soaring by 47% to 251,667 tons.
The negative refining margin for crude palm oil in India, coupled with lower prices offered by exporting countries for refined palm oil, made it an attractive option for buyers.
The landed cost of refined bleached deodorised (RBD) palmolein at Mumbai port was approximately $25 per ton lower than crude palm oil, dealers said.
In addition to palm oil, sunflower oil imports more than doubled in December, reaching 260,850 tons, the highest in three months.
This, along with increased palm oil imports, contributed to a 12.9% month-on-month rise in India's total vegetable oil imports to 1.31 million metric tons.
Soyoil imports in December rose by 1.8% to 152,650 tons, although significantly below the average imports of 306,000 tons in the last marketing year.
Negative refining margins and a higher premium over rival oils were cited as contributing factors.
"Even in January, we could witness higher imports of refined palm oil because of lower prices. Total palm oil imports could rise above 900,000 tons," said a Mumbai-based trader.
India sources palm oil primarily from Indonesia, Malaysia, and Thailand, while soyoil and sunflower oil imports come from Argentina, Brazil, Russia and Ukraine.
20.01.2024
Ukraine supplies 1.28 million tons of wheat to Egypt in 2023
The import of wheat to Egypt in 2023 increased by more than 1 mln tons, according to Reuters. According to the data, Egypt imported about 10.88 mln tonnes of wheat in 2023, up 14.7% from 9.48 mln tonnes in 2022. This was mainly due to the fact that shipments delivered to GASC increased by 26% to about 5.6 million tons. Private sector imports increased by 1.3% to 5.12 million tons.
The majority of Egypt’s imports in 2023 came from Russia, with shipments increasing by 39.5% to 7.56 million tons, accounting for 69.5% of total wheat imports. Ukraine’s wheat imports increased to 1.28 mln tonnes after falling to 845.6 thsd tonnes in 2022, with last year’s deliveries accounting for 11.8% of imports.
The majority of Egypt’s imports in 2023 came from Russia, with shipments increasing by 39.5% to 7.56 million tons, accounting for 69.5% of total wheat imports. Ukraine’s wheat imports increased to 1.28 mln tonnes after falling to 845.6 thsd tonnes in 2022, with last year’s deliveries accounting for 11.8% of imports.
20.01.2024
ADM’s Canadian terminal expansion receives funding
Premiere event for the global leaders of grain & oilseed industry since 2004
Global agribusiness giant ADM has received funding of US$26.3M under Canada’s National Trade Corridors Fund for the expansion of its grain terminal at Port Windsor, World Grain wrote.
The project would increase export capacity to markets in Europe, Latin America and the USA for agricultural production from southwestern Ontario farmers in Essex, Kent, Lambton, Middlesex and Elgin counties, the 12 January report said.
“The investment being made by the government of Canada for the ADM grain terminal expansion project at Port Windsor will allow ADM to maintain and grow our operations,” Kevin Wright, general manager, Great Lakes region, ADM Agri-industries, was quoted as saying.
The project would involve improvements to the terminal’s infrastructure and export loading capacity, Wright added.
ADM has 369 grain storage facilities in the USA and Canada with 434.34M bushels of licensed grain storage, making it the largest grain handling and storage company in North America as listed in Sosland Publishing Co’s 2024 Grain and Milling Annual.
Global agribusiness giant ADM has received funding of US$26.3M under Canada’s National Trade Corridors Fund for the expansion of its grain terminal at Port Windsor, World Grain wrote.
The project would increase export capacity to markets in Europe, Latin America and the USA for agricultural production from southwestern Ontario farmers in Essex, Kent, Lambton, Middlesex and Elgin counties, the 12 January report said.
“The investment being made by the government of Canada for the ADM grain terminal expansion project at Port Windsor will allow ADM to maintain and grow our operations,” Kevin Wright, general manager, Great Lakes region, ADM Agri-industries, was quoted as saying.
The project would involve improvements to the terminal’s infrastructure and export loading capacity, Wright added.
ADM has 369 grain storage facilities in the USA and Canada with 434.34M bushels of licensed grain storage, making it the largest grain handling and storage company in North America as listed in Sosland Publishing Co’s 2024 Grain and Milling Annual.
20.01.2024
International Production & Processing Expo (IPPE)
Location: Georgia World Congress Centre, Georgia, Atlanta, USA
Date: 30th January - 1st February 2024
Date: 30th January - 1st February 2024
20.01.2024
USA continues shift to palm-based fatty acids
US oleochemical producers will continue to switch operations from tallow to palm-based fatty acids this year, according to a report by Argus Media.
With US buyers looking for plant-based alternatives for their personal care and cleaning products, producers with the capability had switched their operations to palm oil products while others were planning to shift production methods, the 20 December report said.
Meanwhile, red meat rendering had declined due to changing food habits in the USA.
According to US Department of Agriculture data, cattle slaughter rates have been declining, impacting supplies of rendered fats for use in soaps, animal feed and feedstocks for renewable biofuels and oleochemicals.
Although tallow consumption continued to grow in the US biofuels industry – with biofuels firms having met their mandates for 2023 – demand had fallen and US tallow prices had declined.
However, tallow prices remained higher than palm oil feedstock prices, which remained the most economical option for oleochemicals producers.
With palm-based products growing in popularity, producers which manufacture purely tallow-based fatty acids risk being priced out of the market, according to industry sources.
With freight rates at depressed levels, the cost of shipping palm oil from southeast Asia was also an economical option for producers, the report said.
US crude palm oil (CPO) imports had been steadily increasing and were expected to rise this year as palm-based production increased.
According to Global Trade Tracker (GTT) data, the USA imported 1.32M tonnes of CPO imports from January-September last year. If CPO imports continued at the same pace throughout the fourth quarter, this would give a yearly total of 1.77M tonnes, the USA’s highest import total recorded by GTT.
Palm-based fatty acids imports to the USA were also expected to increase in 2024, with levels rising since the introduction of EU anti-dumping duties on Indonesian fatty acids imports last year...
With US buyers looking for plant-based alternatives for their personal care and cleaning products, producers with the capability had switched their operations to palm oil products while others were planning to shift production methods, the 20 December report said.
Meanwhile, red meat rendering had declined due to changing food habits in the USA.
According to US Department of Agriculture data, cattle slaughter rates have been declining, impacting supplies of rendered fats for use in soaps, animal feed and feedstocks for renewable biofuels and oleochemicals.
Although tallow consumption continued to grow in the US biofuels industry – with biofuels firms having met their mandates for 2023 – demand had fallen and US tallow prices had declined.
However, tallow prices remained higher than palm oil feedstock prices, which remained the most economical option for oleochemicals producers.
With palm-based products growing in popularity, producers which manufacture purely tallow-based fatty acids risk being priced out of the market, according to industry sources.
With freight rates at depressed levels, the cost of shipping palm oil from southeast Asia was also an economical option for producers, the report said.
US crude palm oil (CPO) imports had been steadily increasing and were expected to rise this year as palm-based production increased.
According to Global Trade Tracker (GTT) data, the USA imported 1.32M tonnes of CPO imports from January-September last year. If CPO imports continued at the same pace throughout the fourth quarter, this would give a yearly total of 1.77M tonnes, the USA’s highest import total recorded by GTT.
Palm-based fatty acids imports to the USA were also expected to increase in 2024, with levels rising since the introduction of EU anti-dumping duties on Indonesian fatty acids imports last year...
20.01.2024
Indian government extends low import tax on edible oil for another year to curb prices
India, the world’s top edible oil importer, allowed traders to buy crude palm, soybean and sunflower oils at low duties for another year in a move that may sustain overseas purchases and cap prices before elections.
Traders and processors will benefit from a zero base import tax until the end of March next year, according to a finance ministry notification. However, they still pay other levies, such as agriculture and social welfare duties, which are imposed on top of the base rates.
The move may help the government control retail inflation, which hit a four-month high in December from a year earlier on more expensive farm commodities. Food inflation, accounting for about half of the consumer price basket, climbed to 9.53% from 8.7% in November.
“While the government aims to maintain price stability, the long-term policy has adverse effects on local oilseed growers,” said B.V. Mehta, executive director of the Solvent Extractors’ Association of India. The pressure on prices effectively discourages farmers from planting more, he said.
The basic customs duty on refined palm, soybean and sunflower oils will continue to be 12.5% over the same period, the notification said...
Traders and processors will benefit from a zero base import tax until the end of March next year, according to a finance ministry notification. However, they still pay other levies, such as agriculture and social welfare duties, which are imposed on top of the base rates.
The move may help the government control retail inflation, which hit a four-month high in December from a year earlier on more expensive farm commodities. Food inflation, accounting for about half of the consumer price basket, climbed to 9.53% from 8.7% in November.
“While the government aims to maintain price stability, the long-term policy has adverse effects on local oilseed growers,” said B.V. Mehta, executive director of the Solvent Extractors’ Association of India. The pressure on prices effectively discourages farmers from planting more, he said.
The basic customs duty on refined palm, soybean and sunflower oils will continue to be 12.5% over the same period, the notification said...