The Hindu Business Line : Vegetable oils import up 28% in March

Import of vegetable oils, for cooking and industrial use, continued to rise and increased by 28 per cent in March, while overall shipments into the country during the current oil year (November 2007-October 2008) was up at 38 per cent.

According to the Solvent Extractors Association, cooking oil imports increased to 4.22 lakh tonnes (lt) against 3.18 lt during the same period a year ago. For the oil year, imports have increased to 22.64 lt against 16.43 lt.

peak crushing season

Imports have increased despite November-March being peak crushing season with kharif oilseeds being available and record production of 94 lakh tonnes of soyabean. One reason for the rise in production despite the peak crushing season is that the carryover stocks from the previous season were lower in view of a lower crop.

Imports have increased despite rise in global and domestic vegetable oil prices. According to Mr B.V. Mehta, Executive Director of the Solvent Extractors Association, the rise in imports was due to the middle income group in the country being able to keep the demand rising in view of higher income.

This demand was able to neutralise the squeeze that was taking place among the lower income group.

Overall imports of vegetable oils are seen at 58 lt to 60 lt this oil year, a little higher than last year.

crude palm oil

Mr Mehta said imports of crude palm oil showed a rising tendency also because of reports of Indonesia’s decision to raise export tax. The data show that refined oil imports have increased by two percentage points from last year.

Again among the vegetable oils, import of palm group of oils continues to witness an increase, making up 88 per cent of the total shipments into the country. This is against the oils making up 77 per cent of the total import last year.

Imports are seen gathering further momentum on lower rabi crop, steady global vegoil prices and the Centre’s decision to lower Customs duty to zero for unrefined oils and 7.5 per cent for refined oils.

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