Chennai, May 13 Vegetable oil imports more than doubled in April, while the shipments into the country are now projected to be at record 80 lakh tonnes (lt) for the current oil year to October.
Data compiled by the Solvent Extractors Association of India (SEAI) show that edible oil imports increased to 6.99 lt against 3.47 lt during the same period a year ago. Of this, edible oil imports made up 6.59 lt (3.09 lt) and non-edible the rest.
The association attributed to the flooding imports to lower than expected domestic production of oilseeds and considerable rise in consumption in view of lower prices.
“We estimate the average consumption of edible oil by a family has increased to over 12 kg a year from the earlier estimate of 11 kg a year,” said Mr B.V. Mehta, Executive Director of SEAI.
Edible oil prices are lower currently compared with the same period a year ago and it is attributed to decline in global prices and zero Customs duty on imports of crude vegetable oils. Despite the rising imports, stocks at the ports were lower than expected and could, at the most, last for a month.
Imports of RBD palmolein showed a rising trend in April at 1.03 lt, up 10 times over the same period a year ago.
Share of soft oils
The other feature of the import scenario is the rising share of soft oils, soyabean, sunflower and others. So far, this year, soft oils share in the total imports has increased to 18 per cent (10 per cent) with palm group of oils making up the rest.
Among soft oils, sunflower oil imports were a little above 66,000 tonnes against 26,000 tonnes of soyabean oil. Last year, during the same period, import of both these oils was nil.
For the first six months of the season, vegetable oil imports have been pegged at 42.92 lt against 26.11 lt, a 64 per cent rise.
SEAI said it was raising the import projections by five lt from the earlier estimate of 75 lt. It also said though edible oil prices have been recovering after bottoming out during November/December last, they were still lower than May 2008. Rising imports may tempt the new government to impost Customs duty, SEAI said.
Source : Business Line