MUMBAI: The import of vegetable oils including edible and non-edible by India — the largest buyer after China — more than doubled in May ’09 to 7.5 lakh tonnes from 3.6 lt in the corresponding month of the previous year due to higher domestic consumption and lower import duties.
Of the total, edible oil imports rose 130% in to 6.9 lt from 3.1 lt in year-ago period mainly due to higher imports of cheaper palm oil (5.9 lt). Non-edible oil imports in May ’09 fell by 8% to 54,472 tonnes from 59,219 tonnes a year ago, revealed a recent data from the Solvent Extractors Association of India (SEA).
At present, crude edible oils can be imported without paying any duty, while refined oil imports such as soya, palm and sunflower attract 7.5% import duty. Vegetable oil imports in the first seven months of oil year (Nov-Oct) jumped 70% to 50.4 lt from 29.7 lt in the same period last year.
SEA expects 6.5-7 lakh tonnes of shipments per month during the next five months and total imports in current oil year at 80 lt, (75 lt edible and 5 lt non-edible). India imported about 63 lakh tonne of vegetable oil in previous year, with edible oil accounting for 56 lakh tonnes.
Edible oil prices, which witnessed a massive decline in November last year to the range of $475-825 a tonne, recovered to a significant extent by May. India relies on imports to meet almost half its edible-oil demand each year. It buys palm oil from Indonesia and Malaysia and soyabean oil from Argentina and Brazil. Other edible oils imported include sunflower oil and small quantities of canola rape oil and coconut oil.
Source : The Economic Times