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Oil goes west

G. Chandrashekhar

THANKS to changes in the import policy and drought conditions experienced by Gujarat, edible oil imports through the west coast ports of Kandla and Mundhra have spurted this season. Gains made by these two ports have been at the cost of Mumbai, which has lost considerable volume, though it still commands a good share.

Though aggregate arrivals till June in the current oil year (November 1999-October 2000) at 25.6 lakh tonnes are only marginally higher than 24.5 lakh tonnes in the corresponding previous period, the choice of ports used for unloading edible oils has ch anged considerably.

According to the port-wise import data compiled by Solvent Extractors' Association of India, vegetable oil imports through Kandla in the first eight months of the current oil year were 5.08 lakh tonnes, considerably higher than the 3.75 lakh tonnes handl ed in the corresponding period of 1998-99.

This is explained by two factors. One is the large-scale import of refined palmolein and the other is a sudden spurt in the arrivals of crude palm oil. It is well-known that refined palmolein blends well with expeller groundnut oil, a popular cooking med ium that is in short supply in Gujarat following a major setback to the crop last kharif season. In the last eight months, over two lakh tonnes arrived through Kandla, an increase of 30 per cent over the previous year.

In addition, Kandla has handled almost 50 per cent of all crude palm oil imported so far, estimated at 3.27 lakh tonnes. Most vanaspati units in the northern parts of the country prefer to unload the raw material at Kandla, given its locational advantage , infrastructure facility and user-friendly attitude.

Mundhra has also started to attract users. Till June, the port handled 1.17 lakh tonnes of edible oils, a respectable volume for a new entry point. The material comprised mainly refined palmolein and soyabean oil.

The share of Mumbai port in edible oil imports has been going down month after month. From November 1998 to June 1999, the port handled 10.69 lakh tonnes of various oils, which has declined sharply to 5.90 lakh tonnes this year. The loss of volume is att ributed to the high cost of port use and octroi-related troubles in Mumbai.

The South-based ports, such as Chennai (4.17 lakh tonnes), Kakinada (3.75 lakh tonnes), Mangalore (81,200 tonnes) and Kochi (69,600 tonnes), are also used by importers in good measure.