Indonesia excluding palm oil from export ban would be a very positive development: Sanjeev Kumar Asthana, Ruchi Soya
“India entirely imports crude palm oil for which, we in turn do the refining. A very marginal part of it is imported olein. So, to that extent, the impact is extremely beneficial for the country,” says Sanjeev Kumar Asthana, CEO, Ruchi Soya.
What do you make of the fine print, there seems to be some clarification which now indicates that the export ban will not be applicable for export of raw palm oil by Indonesia?
That is right. We are hearing this as well that crude palm oil is exempt from the export ban. That means nearly 90% of the problem of what we were anticipating would go away, if indeed this is true. We are still awaiting the exact clarification. The forward futures market DMD is down almost 3% so this is a very positive development for India as an importer and I would imagine even for the world as well.
What do you make of the fine print, there seems to be some clarification which now indicates that the export ban will not be applicable for export of raw palm oil by Indonesia?
That is right. We are hearing this as well that crude palm oil is exempt from the export ban. That means nearly 90% of the problem of what we were anticipating would go away, if indeed this is true. We are still awaiting the exact clarification. The forward futures market DMD is down almost 3% so this is a very positive development for India as an importer and I would imagine even for the world as well.
90% of the problem, why not 100% because if there is no export ban…
This is a very marginal import of olein which is the refined palm oil that is exported. However, it could be close to 100% because India entirely imports crude palm oil for which, we in turn do the refining. A very marginal part of it is imported olein. So, to that extent, the impact is extremely beneficial for the country.
And for Ruchi Soya, do you import olein or you do not import olein at all?
We do not import olein at all because we have got strategic assets at all the ports, the refining capacity. We entirely import crude palm oil and refine it at the port based refineries.
Olein I would imagine is imported by smaller and unorganised players. Am I correct?
No. In between, there were some duty dynamics which were declared by the government. At some point of time, it was slightly beneficial to switch between crude and olein but subsequently, the duty adjustment was done and then crude palm oil became the primary choice of imports and olein opportunistically or otherwise, if some exceptional thing comes up may get imported. But otherwise, it is mostly crude palm oil now.
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