RBD Palmolein is refined, bleached and deodorized form of palm oil which is extracted after crushing palm fruit. It is used in many countries as edible cooking oil.
RBD Palm Olein is the liquid fraction obtained by the fractionation of palm oil after crystallization at controlled temperatures. It is used as an important raw material in the manufacture of soaps, washing powder and other hygiene and personal care products.
Palm oil is obtained from fresh fruit bunches (FFB) of oil palm cultivated in plantations. There are several commercial variants of palm oil available viz., Crude Palm oil, Crude Palmolein, RBD (Refined Bleached Deodorized) Palm oil, RBD Palmolein and Palm Kernel Oil.
RBD Palmolein is used as cooking oil as well as frying oil for food industries such as snack food and ready-to-eat food. It is also used as a raw material for margarine and shortening. It is used in soap, candles and oleo chemical industries.
Palmoil production and trade is widely spread across the world. However, its production, consumption and trade are dominated by a few nations. Palm oil dominates the global vegetable oil export trade.
The world Palmoil production in 2011-12 is 50.68 million tons as against 47.95 million tons in 2010-11.
The world's two largest Palmoil producing countries are Indonesia and Malaysia which together account for nearly 87% of the world production. Other major producers include Columbia, Thailand and Nigeria.
Indonesia has nearly expanded its output in the past decade making it the largest producer of palm oil in the world, accounting for 51% of total world output.
Indonesia and Malaysia are the largest exporter of Palm Oil & it’s by products, accounting for the entire global trade in Palm Oil, which is estimated to be 38.78 million tons in 2011-12. Malaysia and Indonesia with 17.95 and 16.7 million tons respectively are major exporters. While India is the largest importer of Palm Oil followed by China & EU.
Price competitiveness has been reason for increased consumption of this oil.
India is one of the largest vegetable oil importers in the Asian continent followed by China. Crude Palm Oil is the single largest commodity of India’s edible oil import basket. India is basically a net importer of the palm oil.
India imports Crude Palm Oil mainly from Indonesia while from Malaysia it imports mostly refined, bleached and deodorised (RBD) palm olein. Palm oil imported into India is used in various forms- consumed directly as 'palm oil' after refining, used in the manufacture of Vanaspati, for blending with other vegetable oil, crude oil and kernel oil for industrial purposes, etc.
India imports roughly 2.9 million tons of Palmoil and its variants a year. The domestic production is very meager at 0.5 lakh tons. In 2011-12 (Nov – Mar) India imported 20.79 lakh tons of Crude Palmoil and 8.21 lakh tons of RBD Palmoil.
Kandla, Haldia, Kakinada are the major ports for Crude Palmoil & RBD Palmolein entry to India and the major trading points too.
Factors influencing RBD Palmolein trading
- Oilseeds production at domestic and global level
- The supply-demand and price scenario of competitive oils
- The Government export-import policy
- The supply-demand scenario of all oils and oilseeds in the consuming centers, viz., India, China and EU. This in turn is manifested as imports from these countries
- The palm oil production cycle: April - December is peak production period
- Import regulations imposed in the importing countries
- Crude Oil Prices due to use of Palm oil in manufacturing of biodiesel