Edible Oil Imports Likely to Remain High Despite Bumper Kharif Harvest.

Good rains this year is lik­ely to increase kharif oil­se­eds output by 1.7 million to­nnes to 15.4 million tonn­es from last year’s 13.7 million tonnes. But, there may be no respite from edible oil imports that is likely to surpass 9 million tonnes this oil year that began this mo­nth, said industry experts.

“India’s edible oil cons­umption increases by sev­en to eight per cent every year. This year consumpti­on is expected to rise by one million tonnes with more than two crore people add­ed to our population,” said BV Mehta, executive director of Solvent Extractors Association of India said on sidelines of an industry conference here.

Government has pegged output of nine major oilsee­ds in 2009-10 season at 15.6 million tonnes and this year, the government has targeted 20.7 million tonnes seeds.

Indian millers imported about nine million tonnes edible oil during November 2009 — October 2010. Till beginning of October 2010, imports had already touched 8.8 million tonnes.

“High global prices will not be a constraint. Though no expectations are there from the government to subsidise these heavy imports, better edible oil prices are likely to enthuse farmers for planting more oilseeds shifting from other rabi crops like wheat,” Mehta added.

India’s edible oil output during the 2010-11 is estimated to rise to 7 million tonnes compared to 6.1 million tonnes the previous year.

Consumption of edible oil is seen to rise by more than a million tonnes to 15.7 million tonnes from 14.6 million tonnes in 2009-10 (November to December).

“Import of palm oil will assume significance during the year. Global price trends are assuming correction right now, but are expected to climb in calendar 2011 as soybean and other oilseed crop in growing areas of US and Brazil are pressured due to unfavourable climate prevailing this year,” said Govind G Patel, an independent expert on edible oil and Gujarat based oil miller.

Source : mydigitalfc.com