Uncertain import norms delay soyoil shipments

May soyoil imports could also be affected if the uncertainty continues, they added.

"The recent government order making prior declaration mandatory for all genetically modified products imported after April 7 is leading to some uncertainty in the minds of sellers as most soyoil imported is from genetically modified (GM) seeds," said Rajesh Agarwal, chairman of Soybean Processors Association of India.

"As a consequence, those sellers whose letters of credit are to be opened after April 7 are holding on to their vessels for the time being."

Though he declined to give numbers, some traders said shipments totalling around 90,000 tonne have been delayed.

"The shipments are mostly from Argentina and Brazil as India imports bulk of its soyoil from these two nations," B V Mehta, executive director, Solvent Extractors Association of India, said.

Last week, the government in its Foreign Trade Policy for 2006-07 made prior declaration mandatory for all imports of genetically modified products.

Welcoming the announcement, the domestic edible oil industry had expressed hope the move would go a long way in curbing soyoil imports and also benefit local crushers.

Traders and industry players said May soyoil imports could be affected if the uncertainty continues for more than a month as oil from GM seeds constitutes bulk of the imports.

"Though it is premature to predict the exact impact of the delay on May imports, if this uncertainty continues than imports could drop by roughly 2-3 per cent," an industry player said.

India is one of the largest edible oil consumers and imports around 2,00,000 tonne of soyoil every month, largely from Argentina and Brazil.

In 2004-05 (November-October), roughly 2-2.1 million tonne was imported, mainly from the two South American nations.

"Foreign sellers are uncertain whether their shipments would be subjected to any undue checks and tests during unloading, which could force them to hold on to the vessels till the central government lays down proper rules and regulations regarding prior declaration of GM imports," Mehta of SEA said.

Industry players said though May soyoil arrivals could be hit, April supplies would be normal.

Around 2,00,000 tonne of soyoil have already been imported before the order came, while another 1,30,000 tonne are lying in the ports, which when added to locally produced oil, is enough to meet requirement.

"Moreover, oil consumption goes down in the summer months, which means than any affect of the delay would be felt only in May," a Mumbai-based commodity analyst said.