India has imported a record 9.24 million tonnes of vegetable oils worth Rs 38,000 crore during 2009-10 oil year ended last month on the back of rise in per capita consumption of edible oils because of cheaper imports.
"The total import of vegetable oils (edible oil, non-edible oil and vanaspati) for the year 2009-10 (November 2009 to October 2010) is a record since import opened in 1994 and reported at 9.24 million tonne valued at Rs 38,000 crore," Solvent Extractors' Association of India said in a statement.
India had imported 8.66 million tonnes in 2008-09.
Imports of vegetable oils achieved a new high thanks to rise in edible oils imports as shipments of both non-edible oils and vanaspati have declined.
Import of edible oils increased to 8.82 million tonnes in 2009-10 oil year from 8.18 million tonnes. "Edible oil imports have doubled in last five years".
Non-edible oils imports fell to 4,20,000 tonnes from 4,60,000 tonnes, while no imports took place of vanaspati as compared with 20,000 tonnes in the review period.
SEA attributed the main reasons for increase in import of vegetable oil to increase in per capita consumption of edible oils, duty-free import of crude edible oils and nominal duty on the refined edible oils.
"Zero import duty on crude edible oils and very nominal duty on refined edible oil have favoured the import over domestic oils at the expenses of Indian oilseeds farmers and processors," SEA pointed out.
Lower price has boosted the demand and consumption of low priced oils like plamolein, it added.
SEA estimated the stock of edible oils at ports and in the pipeline at the start of the current oil year i.e November 1 at nearly 1.5 million tonnes.