MUMBAI (Commoditiescontrol)- India’s import of vegetable oil has increased year-on-year (YoY), as reflected in data released by the Solvent Extractors Association of India (SEA) due to improved demand in the domestic market.
India has imported 1,216,546 tonnes in September 2015, as against 1,047,620 tonnes same period a year ago. This reflects a rise of 16 per cent in oil imports. The overall import of vegetable oils during Nov.’14 to Sept. ’15 is reported at 12,941,611 tonnes compared to 10,572,994 tonnes i.e. up 22 per cent.
Intersting pattern has emerged on a month on month (MoM) basis, when the country witnessed an actual decline in imports.
In contrast to the trend on cummulative edible oil imports, in September imports were down 12 per cent on a MoM basis, because of harvesting season besides government initiating measures. India is being treated as a dumping ground for excessive supply of edible oils in the world market. Givent the price difference, the domestic price of premium edible oil being higher than that in the prevailing rates in the global market, particularly crude palm oil, which made India an attractive destination for veg oil export.
During the eleven month period, between November 2014 - September 2015, imports of edible vegetable oils stood at 12,770,880 metric tonnes, as against 10,388,215 metric tonnes. Of the total edible oils imports, crude edible oil constituted 86 per cent, whereas, refined oil contributes 14 per cent.
In September 2015 imports for edible vegetable oil has gone up by 18 per cent, as compared to year ago level.Excessive import has put tremendous pressure on the local prices. The current price are at a lower level than before, putting farmers and stockiest in a situation of distress. As a result, they are losing interest in oilseeds and shifting away to other crops and suitable substitutes. The country’s dependence on imported oil has further increased to nearly 70 per cent, an alarming situation for the country’s food security, SEA had pointed out in its release.
Meanwhile, the latest stock position as of October 2015 is 22,40,000 metric tonnes, when compared to 18,60,000 metric tonnes a year ago period, showing a rise of 20 per cent stock holding at various ports and pipelines.
India’s monthly requirement is about 16.0 lakh tonnes against current holding of over 22.40 lakh tonnes, which is equivalent to 42 days requirements, indicating a possible rise in prices in the near term.
(By Commoditiescontrol Bureau; +91-22-40015533)
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