Chennai, June 15 The deluge of vegetable oil imports continued in May, with shipments into the country more than doubling compared with the same period a year ago. Imports were also at a three-month high, according to data from the Solvent Extractors’ Association of India.
Imports totalled 7.51 lakh tonnes (lt) in May against 3.61 lt during the same period a year ago and 6.99 lt in April this year. Of the total imports, edible oils made up 6.96 lt and non-edible for industrial use comprised the rest.
For the oil year to October, total imports are up 70 per cent compared with the same period a year ago. Shipments of vegetable oils into the country during November-May are estimated at 50.43 lt against 29.73 lt. Of this, edible oil imports were 47.9 lt (25.46 lt).
Since November, after which imports have been constantly above 6 lt, prices of the palm group of oils have increased over $230 a tonne. But they are still attractive, as crude vegetable oils do not attract Customs duty.
“Imports are likely to continue for the rest of the season mainly in view of non-crushing period and shipments of palm group of oils themselves are likely to be over 5 lt. With 1.5 lt of soft oils, total imports until October are likely to be 6.5-7 lt every month,” the Solvent Extractors’ Association said in a statement.
Reasons for import
When asked about the reason for the flooding of vegetable oil imports, Mr B.V. Mehta, Executive Director of the association, said one of the reasons was that edible oils were cheaper compared with the same period a year ago.
“Consumption of edible oils has also gone up,” he said, adding that there could be 10-12 lakh tonnes of vegetable oils’s stock in the country.
“Some 5-6 lt could be in the ports and a similar amount should be in the pipeline,” he said.
The Solvent Exctractors Association, in its statement, said imports this season could be around 75 lt of edible oil and another 5 lt of non-edible oils.
“This is mainly due to lower than expected domestic production of oilseeds,” it said.
Palm group dominates
Between April and May when imports increased, global prices increased by $48 for RBD palmolein, $70 for crude palm oil, $57 for crude soyabean oil and $45 for sunflower oil.
Palm group of oils continue to dominate the import basket, making up 86 per cent, with soft oils such as soyabean, sunflower and rapeseed making up the rest. For the oil season, palm group of oils make up 83 per cent and soft oils the rest.
May saw imports of sunflower oil slowing to 30,100 tonnes against 66,730 tonnes in April, while soyabean oil shipments were up at 48,102 tonnes against 26,206 tonnes a month ago.
Last year, during the same period, imports of these oils were negligible.
But imports of RBD palmolein increased to 1.42 lt from 1.03 lt in April and a meagre 19,000 tonnes in May last year.
Crude palm oil imports were up at 4.45 lt against 4.31 lt this April and 2.65 lt in May last year.
Source : Business Line