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MUMBAI (Commoditiescontrol) - India's edible oil imports rose 32% on year to 1.32 million tonnes in May, according to data from Solvent Extractors' Association of India released today.
The country imported 8.32 million tonnes of edible oil during Nov-May, down from 8.51 million tonnes a year ago. In May, overall imports of vegetable oils--comprising edible and non-edible oil--were at 1.38 million tonne, compared with 1.02 million tonnes a year ago.
Imports of edible surged in last two months due to shortage of edible oil in domestic markets due to slow oilseeds selling by farmers amid poor rates in the spot market, the release said.
Prices of oilseeds have fallen below MSP due to a bumper production in the country in 2016-17 (Jul-Jun).
Lower realization to farmers may lead to a fall in acreage under the oilseeds in ongoing kharif season, the association said.
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In order to discourage import and support the farmers from not switching over to other crops, the association has appealed to the government to hike the import duty on crude and refined vegetable oil to 20% and 35%, respectively, from 12.5% and 20%, the release said.
Since April 2016, the landed price of refined bleached and deoderised palmolein has either been the same or lower than that of crude palm oil, encouraging higher import of refined bleached and deoderised palmolein at the cost of crude palm oil, SEA said.
The spread between palm oil and soft oil has reduced encouraging larger import of soft oils. Appreciation in rupee against the US dollar in last five months has also boosted the imports of vegetable oils, the release said.
As of Jun 1, India had 770,000 tonne of edible oil in stock at ports, with an additional 1.39 million tonne in the pipeline.
India's monthly requirement is about 1.75 million tonne and operate at 30-day stock against which currently holding stock over 2.16 million tonne equal to 37 days requirements, the SEA said in its report.
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(By Commoditiescontrol Bureau; +91-22-40015533)
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