NEW DELHI: India's vegetable oils imports may rise by 20 per cent to touch 7.5 million tonnes in 2008-09 season ending October this year on the back of zero import duty on cooking oil, according to industry estimates.
Imports of vegetable oils, which include both edible and non-edible, have increased by 59 per cent to nearly 36 lakh tonnes during November 2008 to March 2009 of the current oil year (November-October), but industry official expect imports to slow down i n the remaining seven months.
“Looking at over-stock of one million tonnes of edible oil, the import is likely to slow down in the coming months. We expect the vegetable oils import at 7.2-7.5 million tonnes in 2008-09 oil year,'' Mumbai-based Solvent Extractors Association of India Executive Director, Mr B V Mehta told PTI.
India had imported 6.3 million tonnes in 2007-08 oil, of which 5.6 million tonnes was edible oils. The country imports palm oil from Indonesia and Malaysia, while soyabean oils are being sourced from Argentina and Brazil. The edible oils imports could b e in the range of 6.7-7 million tonnes, while non-edible oils to fall to 5,00,000 tonnes from 6,47,685 tonnes in 2007-08.
The Association is surprised over rising imports in spite of huge stocks at Indian ports. “It seems that the domestic oil availability has reduced due to lesser kharif crop and the current mustard crop is not fully marketed as farmers are holding in ant icipation of better price and in the process import is rising to an unprecedented level,'' SEA pointed out.
Besides, the trade body noted that consumption of cooking has increased because of fall in the price of edible oils an account of zero duty.
Source : Business Line