The Hindu Business Line : Dec vegoil imports steady

EDIBLE oil imports during December 2002 totalled 3.31 lakh tonnes, little changed from the previous month's volume, according data compiled by Oilmandi.com, an industry portal.

Imports comprised mainly 1.30 lt of crude palm oil, 1.18 lt of crude olein and 67,200 tons of crude soybean oil, the rest accounted for by crude sunoil, crude palm kernel oil and refined palmolein.

Despite a low customs duty of 45 per cent, degummed soyabean oil inflows have slowed down considerably because of a high tariff value ($600 a tonne), which has made palm group of oils more attractive.

In the international market soya oil prices have moved down in the last few days by about $30-35 a tonne to $510 a tonne free-on-board origin, making the tariff value look punitive and creating a disparity.

Even a major decline in indigenous oilseeds output in the kharif season and unsatisfactory rabi prospects have had no impact on overall import volumes.

According to traders, low key imports last two months are the result of not so encouraging offtake of oils in the domestic market. The recent price spurt will further reduce consumption, it is feared.

Mr Dilip Kumar of Tapasya Trading Co estimated port-based stocks at about 2.7 lt, barely sufficient to cover the import requirement of three weeks. Obviously, traders are unwilling to take any speculative position and stockists are content with hand-to-mouth purchases.

In the last few days, ready groundnut oil prices have spurted and on December 31 stood at Rs 510 per 10 kg trading lot in the Mumbai wholesale market following restrictions imposed in Gujarat from where Mumbai gets supplies.

On September 24, groundnut oil was quoted at Rs 425 from where it has steadily climbed with occasional dips. With most popular cooking oil becoming scarce and its price differential with refined palmolein (Rs 390) widening now to about Rs 120 for the 10 kg lot, instances of adulteration are reportedly on the rise.

Ironically, rising groundnut oil prices have pushed castor oil rates up in the last few weeks. From Rs 340 early December, the market is over Rs 370 now. Still, it pays to blend castor oil with premium groundnut oil.

Rising domestic prices are unlikely to boost import volumes any time soon. Apart from sluggish demand, uncertainties relating to tariff value and customs duty changes have made traders cautious.

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Dec vegoil imports steady