03Feb2021 Indian De-oiled Rice Bran Oil Cake Market Intelligence
Indian De-oiled Rice Bran Oil Cake
The imports of DORB (De-oiled rice bran) in India is miniscule in comparison to its total domestic production which hovers around 6-6.5 million tons. Moreover, majority of the imports are from neighboring countries of Bangladesh and Sri Lanka.
The imports are basically to meet the demands of neighboring Indian states like Kerala and Tamil Nadu in south whereas north-eastern India and parts of West Bengal which borders Bangladesh.
In addition, the imports rose during 2019-20 and 2020-21 FY particularly due record high prices of DORB particularly from OND’18 till JAS’19. Moreover, COVID-19 lock down for most part of 2020 impacted domestic transportation and logistics which prompted the buyers in southern India to depend on imports from nearby country of Sri Lanka.
However, with gradual relaxation on lock down rules and opening up of economy amidst bumper paddy harvests imports from Oct’20 has drastically fallen. In addition domestic DORB prices are also trading at 2 year low.
Recently, in 2021 Union budget custom duty on DORB imports are now raised to 15% from earlier 0% in order to support domestic DORB production.
This is not likely to have any bigger impact on DORB prices in domestic market as its availability is more than adequate and also we are a major exporting country.
During Oct’20-Nov’20, DORB exports from India is reported to be around 90,399 tons which is higher compared to total imports during 2019-20 FY. The imports of DORB in India is mostly dependent on price parity in domestic market particularly from north to south or northern India to north-eastern India.