BANGALORE: India has reported imports of 3.31 lakhtonnes of refined edible oils during the first two months of the ongoing oil year (the oil year runs from November to October). “The imports of such huge quantities of refined edible oils comes as a surprise as the Union government has slashed the import duty on crude edible oils, notably crude palm oil to zero while crude soya oil still attracts a 7.5% duty,” trade sources told ET.
Curiously, the total import of edible oils during the first two months of the ongoing oil year are pegged at 5.19 lakh tonnes in November 2008 and 7.86 lakh tonnes in October 2008.
Interestingly enough, these imports come at a time when the country has seen record oilseed output notably of soyabean and India is hoping for a bumper rabi (winter) crop of rapeseed/mustard. India’s soyabean production is pegged at about 9.7 million tonnes.
The latest report from the US Department of Agriculture (USDA) says, “As a result of larger crops of soybeans, peanuts, and rapeseed, India’s production of oilseeds in 2008/09 is expected to be a record 34.45 million tons. As peanut area benefited from less area sown to cotton. A higher area estimate (6.5 million hectares) this month was responsible for boosting the 2008 peanut harvest by 200,000 tons to 6.6 million, equaling the total a year ago.”
It is believed that a massive fall (of over 50%) in global edible oil prices coupled with fall in crude (petroleum) prices has encouraged more imports of refined edible oils into India.
The Union government had, it may be recalled, in its bid to ensure adequate availability and cool the inflationary pressure, eased the import duties on crude edible oils, notably on crude palm oil (CPO), while retaining the same duty at 7.5% on crude soyabean oil. Data from the Solvent Extractors Association of India indicates that imports of edible oils in November 2008 itself has shown a 49% year-on-year rise.
Source : The Economic Times