India’s vegetable oil imports fell for the second consecutive month in February, following excessive imports during the first quarter of the year (November-January) and larger stock at the ports and pipe lines.
Data compiled by the Mumbai-based trade body The Solvent Extractors’ Association, showed total vegetable oil imports declining by a marginal 8 per cent to 700,769 tonnes in February, as compared to 762,544 tonnes in the corresponding month last year. Notably, the share of refined oil increased to 20 per cent at 131,160 tonnes in February from 16 per cent at 131,876 tonnes in the previous month, while the contribution of crude oil fell marginally to 80 per cent at 540,133 tonnes from 695,306 tonnes in the earlier month.
However, traders continued fresh bookings following abuzz that there is a possibility that there would be an increase in duty levy post normalisation of inflationary pressure.
However, overall import of vegetable oils during the first four month of the current oil year (November 2009-October 2010) was reported at 3,114,553 tonnes, a rise of 5.5 per cent from 2,951,551 tonnes in the corresponding period last year.
Overall increase in imports was mainly due to reduced kharif crop coupled with lower crushing due to disparity. Appreciation of the rupee against the dollar and zero import duty on crude vegetable oil and marginal duty on refined vegetable oils encouraged larger import during peak crushing season in India.
Currently, import duty on crude vegetable oil has been waived, while for refined oil it is levied at 7.5 per cent.
During November-February, import of refined, bleached and diodized (RBD) palmolein was reported at 513,296 tonnes as compared to 471,177 tonnes during the same period last year.
Palm oil imports during the first four months were at 2,398,509 tonnes as compared to 2,334,463 tonnes during the same period last year. Similarly, soft oil imports increased to 574,478 tonnes, consisting of 380,993 tonnes of crude soybean oil, 175,335 tonnes of sunflowerseed oil and small quantity of 13,950 tonnes of rapeseed oil compared to 490,478 tonnes for the same period of last year.
Average crude palm oil prices jumped around 20 per cent during the last one year from Rs 28,252 a tonne in February 2009 to Rs 35,959 a tonne in the same month this year. RBD palmolein perked up to Rs 39,182 a tonne from Rs 33,380 a tonne.
Source : Business Standard