Chennai, April 15 Vegetable oil imports increased 28 per cent in March compared with the same period a year ago but the pace of the shipments in to the country slowed down compared with the previous three months.
Surprising surge
According to the Solvent Extractors Association of India, vegetable oil imports increased to 6.41 lakh tonnes, including 6.09 lakh tonnes for edible purpose, against 5.02 lakh tonnes a year ago.
Vegetable oil imports increased 144 per cent in December, 73 per cent in January and 48 per cent in February.
In January, the shipments almost touched nine lakh tonnes.
For the oil year that began in November, the imports have increased 59 per cent to 35.92 lakh tonnes (lt) against 22.64 lt during the year-ago period. The Solvent Extractors Association, in its data for March, expressed surprise over the rising imports despite huge stocks at the ports and in the pipeline. The importers seemed to have ignored the rise in prices during the last three months in the global market.
Hoping for more
“Domestic oil availability has been reduced due to lower kharif crop and the current rapeseed/mustard crop has not been fully marketed as farmers are holding on to their produce, hoping for prices to rise,” the association said.
“It is also true that with prices ruling lower due to zero Customs duty, the consumption has also increased substantially,” it said.
The association said prices for RBD palmolein which ruled at an average $565 a tonne in November increased to $669 in March. Similarly, crude palm oil prices have increased to $589 ($475), crude soyabean oil to $737 ($712 in December) and crude sunflower oil to $768 ($762 in December).
The data provided by the association also show that prices of crude soyabean oil and sunflower oil are lower in March compared with January and February.
The association reiterated its charge that RBD palmolein, whose imports are rising fast, was being used for “unethical” blending with other domestic oils such as groundnut oil.
Refined oils share
An interesting aspect of the imports is that the share of refined oils in the import basket has increased to 15 per cent from four per cent a year.
However, in March their share dropped to seven per cent.
A feature of the import is the shipment of sunflower oil, which is gaining market share among edible oils. Its imports are estimated at 2.86 lt against nil imports a year ago.
Imports of crude or degummed soyabean oil, which had slowed down on disparity in Customs duty, gathered momentum in March with 3.27 lt coming into the country – the highest for the current oil year.
Palm group’s share
Palm group of oils continue to garner 80 per cent share of the total vegetable oil imports.
During November-March, 28.13 lt of palm group of oils were imported against 6.20 lt of soft oils such as soyabean and sunflower.
However, they were lower than last year’s share of 88 per cent.
The import scenario also throws up another interesting feature.
Shipments of non-edible oils into the country are down 52 per cent at 1.58 lt compared with the year-ago period.
Source : Business Line