India is the world’s biggest importer of palm oil. Interestingly, over the last one year, while imports of crude palm oil has been on a decline, that of refined palm oil has been rising sharply. Export taxes by major producers like Indonesia and Malaysia have a lot to do with this anomaly as does India’s custom duties. Is this the right time to jump into imports of RBD Pamolein? The Dollar Business examines.
If you are one of those health-con-scious people who use palm oil for their daily cooking needs, chances are, you have been buying oil produced in either Indonesia or Malaysia. Yes, you have been a consumer of imported palm oil all this while. And even if buying locally produced palm oil was your want, it’d be rather hard to fulfil it. The reason is simple – in the last few years, Indian producers of palm oil have not been able to catch up with the growing domestic demand for the product.
Data from US Department of Agriculture reveals that the domestic consumption of palm oil in India has increased from 7,000 metric tonne (MT) in CY1964 to a humongous 10.20 million metric tonne (MMT) in CY2016. In fact, India’s consumption of plam oil increased 10.8% just between CY2015 and CY2016. To add to that, of all the edible oils that are consumed in the country, palm oil constitutes a major share – especially refined bleached and deodorised palmolein oil (RBD palmolein oil). And, guess what! Experts say that the demand for this commodity is only going to go one way from here – upwards! Looks like a good business to get into? The Dollar Business is glad to have triggered your curiosity. And if you’re thinking whether it’s worth investing in the imports business of palm oil, let us tell you that all facts lead to the conclusion that India cannot do without importing palm oil in one form or the other.
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This story is from the May 2017 edition of The Dollar Business.
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This story is from the May 2017 edition of The Dollar Business.
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