Veg oil imports likely to remain stable at 9.2-mt.

NEW DELHI: The country’s vegetable oil imports in the current oil year ending September 2011 is likely to remain stable at last year’s level of 9.24 million tonnes on increased oilseeds output, the Solvent Extractors’ Association (SEA) has said.

“Vegetable oil import is likely to be of the same level during the current oil year as additional production will take care of incremental demand,” the SEA Executive Director, Mr B.V. Mehta, said.

During the 2009-10 oil year, India imported 9.241-mt vegetable oil, up 70 per cent from 5.39 mt in 2005-06.

Out of the total projected vegetable oil imports in the current oil year, edible oil would comprise 8.82 mt and the rest is non-edible oils.

Of the total edible oil imports, crude palm oil would comprise 5.3 mt (against 5.17 mt in 2009-10) and soyabean oil 1.4 mt (against 1.667 mt last year).

Production of oilseeds during 2009-10 stood at around 24.9 mt compared with 27.7 mt in 2008-09 and 29.8 mt in 2007-08.

Quoting the Centre for Monitoring of Indian Economy, he told an international seminar that the forecast for the current year production is at 28.2 mt.

“Imports were higher in 2009-10 as depreciation of dollar vs rupee has made it more attractive, he said, adding that disparity in domestic seed crushing led to poor capacity utilisation.

Source : thehindubusinessline.com