Edible oil imports may rise on soyoil demand

The country's edible oil imports is likely to increase by 10 per cent at 15 lakh tonne during May-July this year, as compared to 13.62 lakh tonne in the year-ago period due to surge in soyabean oil imports.

"Edible oil imports is likely to touch 15 lakh tonne in the third quarter of vegetable-oil year," said B V Mehta,executive president, Solvent Extractors' Association of India.

Edible oil marketing year runs from November to October. The edible oil imports in May is pegged at four lakh tonne, he said, adding that in subsequent two months imports could go up at the rate of one lakh tonne a month.

The rise in imports would be due to surge in soyabean oil imports, which is likely to touch seven lakh tonnes during May-July compared to five lakh tonne last year, said Mehta.

The imports of palm oil is likely to remain at same level of eight lakh tonne during the period under review, he added.

Meanwhile, Mehta has termed the decision of National Agricultural Cooperative Marketing Federation (Nafed) to sell one lakh tonne of rape-mustard seeds from June ownwards as "not a good news" for the edible oils industry.

He said Nafed should dispose at least 3-4 lakh tonne of seeds from June till October, after which the kharif crops would start arriving in the market.

Nafed is presently carrying 36 lakh tonne of rape-mustard seeds, which could be converted into 12 lakh tonne of edible oils, Mehta said.

"Nafed should sell at least 1-1.5 lakh tonne of mustard seeds in a week during June-October to edible oil industry. The agency will get a good price and moreover it would reduce the edible oil imports and increase the oilmeals export," he said, adding "It's a win-win situation for all".

The market is likely to remain firm during coming months and this is the right time to dispose, Mehta said.

The disposal of stocks from Nafed would support domestic crushing industry and solvent extraction units through better availability of raw material and boost the export of rapeseed meal, the association said.

The edible oil imports in April this year declined by 32 per cent at 3.54 lakh tonne compared to 5.21 lakh tonne a year-ago, while for the first half year (November-April) it went down by 19 per cent at 18 lakh tonne as against 22 lakh tonne in the corresponding period last year.