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Traders and Importers of Palm Oil of India rises in 2021

Palm oil is a vegetable oil that is edible and is mostly used in cosmetics, food, toiletries, and also sometimes as cleaning products. It is derived from the palm fruit in West Africa. During the 19th century, it was later imported to Southeast Asia from Africa and has a vast production in Malaysia and Indonesia. Palm oil is considered the best of other vegetable oils due to the below reasons:

 

Palm oil can be extracted throughout the year, as it has a year-round harvesting period. It is the best choice for product manufacturers. Palm oil is the best ingredient as it maintains a solid-state with products at room temperature and it requires less maintenance.

 

The top list of the importers of Palm oil is the European Union, India, Pakistan, Bangladesh, and China. If these countries are examined separately, one of the top importing countries of Palm Oil is India, China, Pakistan, and Spain.

 

The world’s biggest importer of Palm oil is India. In 2017 India accounts for about USD 9748 million.

 

Importers of Palm Oil

 

Palm oil is imported to different regions across the globe. This includes Southeast Asia and also Africa which is produced most commonly. Below are the 15 countries that represent the top Importers of Palm oil.

 

Africa – Egypt, and Kenya

Europe – Netherlands, Spain, Italy, Germany, Russia, and Belgium.

North America – United States

Asia – India, China, Pakistan, Vietnam, Bangladesh, and Japan.

 

Most of the traders and importers of Palm oil countries are located in Asia and Europe.

 

How much Palm Oil is imported by India?

 

India has imported about 64.15 metric tonnes of CPO and RBD of 23.9 lakh MT in the year 2018-19. A bulk of palm oil during this time was from Indonesia. The Commerce Ministry of data showed that India has imported about $10 billion of vegetable oil in the year 2019-20. This has ranked the country fifth for its most valuable import after gold, mineral oil, coal, and telecom instruments.

 

Palm Oil is the cheapest edible oil that is naturally available. Since it has an inert taste that makes it suitable to be used in foods like baked goods or fried snacks. It stays stable even at high temperatures and therefore is suitable for reuse or deep frying.

 

Consumption of Palm Oil by Countries

 

It could be misleading to review the biggest importing countries of palm oil alone. As mentioned both India and the United States are the biggest importers of palm oil. There is a slight difference in how much palm oil is consumed or purchased in every country. According to the reports of the World’s Top Exports, about 20% of the palm oil of the world is imported by India, China ranks second in the import of Palm oil. The amount of palm oil imported by China is half of India’s report of the import rate. If you are examining oil imports, India consumes the most palm oil which is at 11,600,000 MT. Europe imports of about 6,50,000 MT. China is less than the EU which is at 5,250,000 MT.

 

The Report of Indian Import Market of Palm Oil in 2017

 

Palm oil is derived from the flesh and the kennel of oil palm tree fruit. The leaves of the palm tree gain a height of about 20 meters. The fruits of the Palm tree are bigger than the size of plums and are reddish that have a single seed of kernel inside. Crude Palm oil is the most important edible oil considered in India. India has a very less share of the production of palm oil in the world. It contributes very little towards the production of palm oil across the globe and is also not able to satisfy its demand for domestic consumption of palm oil. India produces about 7000 tons of palm oil in a year which has a share of 0.2% of the total production of palm oil in the world. The biggest palm oil-producing state of India is Kerala. This has a 30% of share in the overall production of the country. But the consumption of palm oil in India is 3.7 million tons which are quite big as compared to its production figures. India ranks 4 among the other countries to consume Palm oil across the world. The major demand is from the food and cooking oil industry.

 

The Indonesian Association of Palm Oil, which is also known as Gapki, the shipment of palm oil to India raised to 32%. This recorded 7.6 million MT in 2017. Below are statistics of palm oil from January to December 2017.

 

Month

Value USD (%)

Value USD

January

6.95%

677255947

February

6.67%

650200570

March

7.51%

731983283

April

6.86%

668619608

May

8.27%

505806729

June

11.51%

1121898010

July

6.49%

632451273

August

9.74%

949665155

September

11.25%

1096412720

October

10.12%

986754795

November

6.86%

669037740

December

7.78%

758464857

 

2017 – India Recorded with the Highest Shipments of Crude Palm Oil

 

Different types of Palm oil are available in various forms of oil that are sold in the market are Crude Palm Oil, RBD Palmolein, Crude Palm Kernel Oil, and Crude Palmolein RBD which is refined, bleached, and deodorized palm oil. India imports this crude palm oil in huge quantities from Indonesia and Malaysia to fulfill its consumption. Crude palm oil of about 8857288 MTS is imported in India in 2017. This is then followed by the RBD palm oil with a quantity of 4274278 MTS.

 

Below is an overview of the performance of India’s import of palm oil with its shipment values of the palm oil registered in the year 2017.

 

Type

Value USD (%)

Value USD

Crude Palm Oill

66.67%

6499530239

RBD Palm Oil

33.33%

3249020447

 


The Top Import Partners of Palm Oil of India

 

As stated, Indonesia and Malaysia are the highest producing and exporting countries of palm oil. Thus, India trades the highest with these two countries for crude palm oil. Indonesia and Malaysia together account for about 85% of the world's production of crude palm oil which is mostly produced to export.

 

The Malaysian palm oil export had a fall in 2018. As India raised the import duties to the largest in a decade. The import tax on crude palm oil was raised by India to 30% directly from 15% and also increased the import tax duty on its refined palm oil which was imported to 40% from 25%. India mostly relies on its imports to meet 70% of its requirements of vegetable oil. Why did India increase the Import duty of Palm Oil? The only objective of India was to raise the cost of soybean and groundnut oil more than its minimum support price. The other objective was to move to the offset of the export duty which was imposed by the palm oil-exporting countries like Indonesia and Malaysia. The 3 largest import partners of Palm oil of India as recorded in 2017 are:

 

Foreign Country

Value USD (%)

Value USD

Indonesia

75.81%

7390042418

Malaysia

22.05%

2149444271

Thailand

1.80%

175948155

 

Port-wise analysis report of India

 

As per the Export Genius report of India on the palm oil industry, the Kandla Sea in 2017 was recorded as the highest shipment of palm oil. There was a total of 3234320 MTS of palm oil that arrived at this port. It shared about 26.31% of palm oil amongst the total ports of India. This was then followed by Krishnapatnam Sea Port and the Kolkata Sea Port with a share of 16.26% and 14.91% in value. Below are the 10 largest ports of India where the shipments of palm oil arrived in 20170

 

Indian Port

Value USD (%)

Value USD

Kandla Sea

23.31%

2564584901

Krishnapatnam Sea

16.26%

1584818086

Kolkata Sea

14.91%

1453633932

Chennai Sea

9.77%

952168909

Nhava Sheva Sea

7.46%

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