Product Profile: Edible Oils 1.0 Production of edible oilseeds/edible oils 1.1 Production oilseeds has grown almost double in last 12 years from 176 lakh MT in 2000-01 to 321 lakh MT in 2012-13. In addition, cottonseed has emerged as a significant source of edible oil for India. Other significant sources of edible oil are copra, palm oil, rice bran and oil meals. Production of Oilseeds (Source: Directorate of Economic & Statistics) (Lakh Tonnes) 2000- 01 2007- 08 2008-09 2009-10 2010- 11 2011- 12 2012- 13 Groundn ut 64.1 91.82 71.68 54.29 82.65 69.33 87.14 Sesamum 5.2 7.57 6.4 5.88 8.93 8.21 7.58 Nigerse ed 1.1 1.1 1.17 1 1.08 1 0.87 Rapesee d Mustard 41.9 58.34 72.01 66.08 81.79 67.76 81.93 Linseed 2 1.63 1.69 1.54 1.47 1.41 2.76 Safflow er 2 2.25 1.89 1.79 1.5 1.21 2.79 Sunflow er 6.5 14.63 11.58 8.51 6.51 4.99 11.61 Soyabea n 52.8 109.68 99.05 99.65 127.3 6 122.8 2 126.19 total 175.6 287.02 265.47 238.74 311.2 9 276.7 3 320.87 1.2 State-wise area coverage and production of different oilseeds are given at annex I. 1.3 An estimate of edible oil production in the country made by Solvent Extractors Association of India is given in the Annexure II. 2.0 Export/import 2.1 Despite increase in production of edible oils in the country, around 48% of domestic demand is being met from imports. Trend of increasing imports over years may be seen in the following table:
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Product Profile: Edible Oils
1.0 Production of edible oilseeds/edible oils1.1 Production oilseeds has grown almost double in last 12 years from 176 lakh MT in 2000-01 to 321 lakh MT in 2012-13. In addition, cottonseed has emerged as a significant source of edible oil for India. Other significant sources of edible oil are copra, palm oil, rice bran and oil meals.
Production of Oilseeds (Source: Directorate of Economic & Statistics)(Lakh Tonnes)
1.2 State-wise area coverage and production of different oilseeds are given at annex I.
1.3 An estimate of edible oil production in the country made by Solvent Extractors Association of India is given in the Annexure II.
2.0 Export/import
2.1 Despite increase in production of edible oils in the country, around 48% of domestic demand is being met from imports. Trend of increasing imports over years may be seen in the following table:
Year Net availability of edible oils from all oilseeds(Lakh MT)
Import of edible oil(Lakh MT)
Total availability/ consumption(Lakh MT)
Proportion of imported oil in total consumption in percentage
2.3 Import of edible oil seeds is negligible due to prohibitive import duty of 30%. Ground nut and sesamum seeds are exported in significant quantities.
Import of Oil Seeds (Qty in MT)
S.No. HSCode Commodity 2010-2011 2011-2012
1 120100 SOYA BEANS W/N BROKEN 5 1212 120220 SHELLED GROUNDNUTS WHETHER OR NOT
BROKEN 1737 692
3 120400 LINSEED WHETHER OR NOT BROKEN 411 644 120590 OTHER RAPE/COLZA SEEDS W/N BROKEN 100 5 120600 SUNFLOWER SEEDS WHETHER OR NOT
3.1 Soy Oil: China (after importing soybean), USA, Argentina and Brazil are main producers of soybean oil. Soy oil Balance Sheet (2012-13) (Values in million MT)
3.2 Palm Oil: Indonesia and Malaysia are the main producers. (Values in million MT)
Year 2008/09 2009/10 2010/11 2011/12 Jan 2012/13Feb 2012/13
Production
Indonesia 20500 22000 23600 25900 28000 28000
Malaysia 17259 17763 18211 18202 18500 18500
Thailand 1540 1345 1288 1546 1700 1700
Colombia 795 770 750 915 960 960
Nigeria 850 850 850 850 850 850
Other 3074 3145 3224 3286 3317 3317
Total 44018 45873 47923 50699 53327 53327
Imports
India 6867 6603 6661 7473 7700 7700
China 6118 5760 5711 5841 6300 6300
EU-27 5505 5438 4930 5250 5400 5400
Pakistan 1915 2172 2102 2150 2260 2260
Malaysia 1047 1283 1593 1850 1870 1800
Egypt 1024 1174 1277 1350 1375 1375
United States 1036 994 980 1032 1225 1225
Bangladesh 700 951 996 975 1075 1075
Singapore 336 435 656 775 755 755
Japan 531 581 570 580 620 620
Other 8976 9926 10636 10835 11276 11276
Total 34055 35317 36112 38111 39856 39786
Exports
Indonesia 15964 16573 16422 18252 19600 19600
Malaysia 15485 15530 16596 16600 16700 16780
Papua New Guinea 455 478 500 505 520 520
Thailand 114 121 382 336 480 480
United Arab Emirates 232 344 400 425 450 450
Other 2682 2706 2747 2839 2961 2961
Total 34932 35752 37047 38957 40711 40791
3.3 Rape Oil: EU, China and Canada are main producers. India’s export/import of rape oil is negligible. Rapeseed oil Balance Sheet (2012-13) (Values in million MT)
All edible oils under Chapter 15 of Schedule I not permitted to be exported
2 01.04.08 Notification No. 42/2008-Customs
Govt. vide its Notification reduced the duty to zero on all crude edible oils and to 7.5% on all refined oils. This includes Sunflower, Mustard, Soyabean, Groundnut, Coconut, Palm, Sesame, Tung, Olive oils, margarine, vanaspati and other edible oils.
Restrictions on export of edible oils imposed vide Notification NO. 85 (RE-2007)/2004-2009 not applicable to the following :
(i) Export of Castor Oil, (of non-edible grade),(ii) Export of Coconut Oil through Cochin Port,(iii) Deemed export of edible oils (as input raw
material) from DTA to 100% EOUs for pro-duction of non-edible goods, to be exported, and
(iv) Export of Oils produced out of minor forest produce, as per table given below, even if ed-ible :
ITC (HS) Code
Item Description
15159010 Fixed Vegetable oils viz. Neutralised and Bleached Morwah Oil/fat, Neutralised and Bleached Kokum oil/fat, Neutralised and Bleached Sal oil/ sal fat / Stearine.
i) The export of edible oils is permitted in branded consumer packs of up to 5 Kgs, subject to a limit of 10,000 tons during the next one year up to 31st October, 2009: Such exports allowed only from Customs EDI Ports.
The export of edible oils is permitted in branded consumer packs of up to 5 Kgs. subject to a limit of not exceeding 10,000 tons during 1.11.2009 to 31.10.2010. Such exports allowed only from Customs EDI Ports.”
Prohibition on export of edible oils extended upto 30.09.2011. But, the same not to apply to export of Organic edible oils (new addition now) in addition to other relaxations/exemption granted earlier; but with a ceiling of 10,000 MTs per annum and subject to certain conditions as under:
a) Quantity limit of 10,000 MTs per annum;(b) It should be duly certified by APEDA as being organic edible oils;
(c) Export contracts to be registered with APEDA, New Delhi prior to shipment;
Prohibition on export of edible oils extended till further orders. But, the same not applicable to relaxations/exemption as mentioned in para 3 & 4 above. Export of fish oil continues to be free as per Notification No. 60 dated 20.11.2008.
1507 SOYA-BEAN OIL AND ITS FRACTIONS, WHETHER OR NOT REFINED, BUT NOT CHEMICALLY MODIFIED
1507 10 00 Crude oil, whether or not degummed Free
1507 90 Other:
1507 90 10 Edible grade Free
1507 90 90 Other Free
1508 GROUNDNUT OIL AND ITS FRACTIONS, WHETHER OR NOT REFINED BUT NOT CHEMICALLY MODIFIED
1508 10 00 Crude oil Free
1508 90 Other:
1508 90 10 Deodorized (Salad Oil) Free
Other:
1508 90 91 Edible grade Free
1508 90 99 Other Free
1509 OLIVE OIL AND ITS FRACTIONS, WHETHER OR NOT REFINED BUT NOT CHEMICALLY MODIFIED
1509 10 00 Virgin Free
1509 90 Other:
1509 90 10 Edible grade Free
1509 90 90 Other Free
1510 OTHER OILS AND THEIR FRACTIONS OBTAINED SOLELY FROM OLIVES, WHETHER OR NOT REFINED, BUT NOT CHEMICALLY MODIFIED, INCLUDING BLENDS OF THESE OILS OR FRACTIONS WITH OILS OR FRACTIONS OF HEADING 1509
1510 00 Other Oils and their fractions obtained solely from olives, whether or not refined, but not chemically modified, including blends of these oils or fractions with oils or fractions of heading 1509:
1510 00 10 Crude oil Free
Other:
1510 00 91 Edible grade Free
1510 00 99 Other Free
1511 PALM OIL AND ITS FRACTIONS, WHETHER OR NOT REFINED, BUT NOT CHEMICALLY MODIFIED
1511 10 00 Crude oil Free Import not permitted through any port in Kerala.
1511 90 Other:
1511 90 10 Refined bleached deodorised palm oil Free Import not permitted through any port in Kerala.
1511 90 20 Refined bleached deodorised palmolein Free Import not permitted through any port in Kerala.
1511 90 90 Other Free Import not permitted through any port in Kerala.
1512 SUNFLOWER SEED, SAFFLOWER OR COTTON SEED OIL AND THEIR FRACTIONS THEREOF, WHETHER OR NOT REFINED, BUT NOT CHEMICALLY MODIFIED
Sunflower seed or safflower Oil and fractions thereof :
PREPARATIONS OF ANIMAL OR VEGETABLE FATS OR OILS OR OF FRACTIONS OF DIFFERENT FATS OR OILS OF THIS CHAPTER, OTHER THAN EDIBLE FATS OR OILS OR THEIR FRACTIONS OF HEADING 1516
1517 10 Margarine, excluding liquid margarine:
1517 10 10 Of animal origin Prohibited Not permitted to be imported Of vegetable origin:
1517 10 21 Edible grade Free
1517 10 22 Linoxyn Free
1517 10 29 Other Free
8.2 Export: Governed by Notification No 32 (RE – 2012)/2009-2014 New Delhi, Dated : 5th February, 2013
1. Export of edible oils was initially prohibited for a period of one year with effect from 17.03.2008 vide Notification No. 85 dated 17.03.2008 which was extended from time to time. Vide Notification No. 24(RE-2012)/2009-14 dated 19th October 2012, prohibition on export of edible oil has been extended till further orders.
2. Following exemptions are permitted from the prohibition on export of edible oils:
(a) Castor oil (b) Coconut oil from all EDI Ports and through Land Custom Stations(LCS) [LCS to be notified
separately] (c) Deemed export of edible oils(as input raw material) from DTA to 100% EOUs for production
of non-edible goods to be exported (d) Edible oils from Domestic Tariff Area (DTA) to Special Economic Zones (SEZs) to be con-
sumed by SEZ units for manufacture of processed food products, subject to applicable value addition norms
(e) Edible oils produced out of minor forest produce, ITC(HS) Code 15159010, 15159020, 15159030, 15159040, 15179010 and 15219020.
3. Export of edible oils in branded consumer packs of upto 5 Kgs is permitted with a Minimum Export Price of USD 1500 per MT.
4. The prohibition will not apply to export of Peanut Butter, ITC (HS) Code 15179020.
9.0 Status in FTAs/PTAs/RTAs
India has kept Edible oils in negative list under major trade agreements like as India-Malaysia CECA (except palm oil-HST and olive oil-NT-I category), India-Japan CEPA, India-Korea CEPA, India-Singapore CECA, India-ASEAN FTA (except palm oil-HST and olive oil-NT-I category), SAFTA(non-LDCs) etc.
10. Current policy issues
Deptt of Revenue has notified import duty of 2.5% on crude edible oils wef 23rd January 2013. Tariff value on edible oils has been de-freezed (which had remained frozen at around USD 485 pert MT since 2006) and now made applicable at current prices. Thus for refined edible oils, import duty is @7.5% of the current international prices .
11.0 Phyto-sanitary requirements for import of oilseeds
Plant species Category of plant material
Country of Origin
Additional declarations
Special conditions of im-port
Brassica spp (Mus-tard, Rape/canola, Cabbage, Cauli-flower, Kohlrabi, Brussels sprouts, Broccoli, Knol Khol, Chinese Cab-bage and other Cole crops)
Seeds for consumption Any Country
Nil (i) (a) Weed free crop/ area certification or (b) Zero dockage certification in respect of quarantine weed seeds in the Phy-tosanitary Certificate or (c) Devitalization of seed by heat treatment at 120oC for 15 minutes or any other equivalent treat-ment approved by the Plant Protection Adviser to the Government of In-dia (ii) Management of handling, transportation, milling, and processing of import consignment and manner of disposal of refuse as per the guide-lines prescribed by the Plant Protection Advisor to the Government of In-dia
Carthamus tincto-rius (Safflower)
(ii) Grains (seeds) for consumption
(i) Aus-tralia (ii) Mexico (iii) Ar-gentina
Nil (i)(a) Weed free crop/area certification or (b)Zero dockage certification in respect of quarantine weed seeds in the Phy-tosanitary Certificate or (c)Devitalisation of seed by heat treatment at 120oC for 15 minutes or any other equivalent treat-ment approved by the Plant Protection Adviser to the Government of In-dia and
Grain (seeds) for con-sumption/ processing
Russia Free from Thlaspi ar-vense
(ii)Management of han-dling, transportation, milling and processing of import consignment and manner of disposal of refuse as per the guide-
lines prescribed by the Plant Protection Adviser to the Government of In-dia
Sesamum spp. (Sesamum)
Grains (seeds) for con-sumption
(i) Soma-lia (ii) Sudan (iii) Senegal and (iv) African countries & Pak-istan
Nil (i)Fumigation with Methyl bromide at 16 g. per cubic metre for 24 hrs. at 21oC and above or equivalent or any other treatment approved by the Plant Protection Adviser to the Government of In-dia and the treatment should be endorsed on Phytosanitary Certificate issued at the Country of Origin/re-export.
(ii) Free from quarantine weed seeds and soil con-tamination
Glycine spp. (Soy-bean)
(i) Seeds for consump-tion/ processing
Any Free from Bruchids (Bruchidius spp.)
(i)(a)Weed free crop/ area certification or (b)Zero dockage certification in respect of quarantine weed seeds in the Phy-tosanitary Certificate or (c)Devitalization of seed by heat treatment at 120oC for 15 minutes or any other equivalent treat-ment approved by the Plant Protection Adviser to the Government of In-dia
(ii)Management of han-dling, transportation, milling, and processing of import consignment and manner of disposal of refuse as per the guide-lines prescribed by the Plant Protection Advisor to the Government of In-dia
Helianthus spp. (Sunflower)
Seeds for consumption or processing
Any Country
Nil (i)(a) Weed free crop/ area certification or (b) Zero dockage certification in respect of quarantine weed seeds in the Phy-
tosanitary Certificate or (c) Devitalization of seed by heat treatment at 120oC for 15 minutes or any other equivalent treat-ment approved by the Plant Protection Adviser to the Government of In-dia
(ii)Management of han-dling, transportation, milling, and processing of import consignment and manner of disposal of refuse as per the guide-lines prescribed by the Plant Protection Advisor to the Government of In-dia.
Annexure-IArea, Production and Yield of Groundnut, Soyabean, Rapeseed & Sunflower during