MUMBAI (Commoditiescontrol) – Imports of vegetable oil hit a record high of 146.1 lakh tonnes during the oil year 2014-15, up 23.64 per cent, as compared to 118.2 lakh tonnes recorded in corresponding period a year ago. This is majorly due to lower domestic availability amid heightened demand and lower prices in the international market. Not to forget, Indonesia and Malaysia have maintained zero duty on exports, which ensured edible oil would reach to world's largest consuming nation - India.
In October 2015, edible oil imports surged 34 per cent, almost double the rise that was recorded in the corresponding period previous year. In October 2014, vegoil imports grew 15.89 per cent. However, the figures for 2012-13 for the same period were not available.
Most of the rise in imports of edible oil is attributed to falling prices during the year. Except for crude sunflower oil, prices of other edible oils have declined. Crude palm oil prices during the year has fallen over 20 per cent. RBD Palmolein prices have softened 17 per cent.
The direct correlation between drop in prices and higher imports is underlined by the fact that, the crude palm oil imports have recorded fresh highs, compared to other edible oil. During the period under review, CPO imports grew 23.52 per cent at 77.24 Lakh tones, accounting for 53.56 per cent of total edible oil imports.
Last decade has seen a falling trend for non-edible oil, leaving room for higher imports of edible oils. India has imported highest quantity of soybean, sunflower and rapeseed oils this year due to its attractive price.
CPO has dominated imports over the last five years. Between 2009-10 to 2014-15 oil year, CPO imports were around 60-70 per cent of the total edible oil imports. Lately, the rise in soybean oil imports have ate into CPO imports marginally. Soybean oil imports during the last oil year reached 29.86 Lakh tonnes, up 53.05 per cent. During the period, soybean oil prices have eased over 11 per cent.
Total import of vegetable oil during the last decade has gone up drastically owing to increase in local consumption of the commodity due to rise in per capita consumption by about 4.5 per cent on an average. Also, accelerated growth of population over the past decade has added momentum to the demand basket.
It is worth mentioning that among the total basket of edible oil imports, crude edible oil contributes a greater proportion than refined edible oil, owing to the higher price of the latter. Also, the refining process can be done domestically after the import of crude edible oil has been done.
To ensure import caps, the Central government has agreed to allow 100 per cent FDI in palm oil plantation, so that the same can be produced domestically to meet the overblown demand. Until then, the surging exports from Malaysia and Indonesia will continue to pressure prices in the future.
(By Commoditiescontrol Bureau; +91-22-40015523)
0 Comments 
Post Comment 
