India’s vegetable oil imports set a new record in the recently ended oil year (November 2011–October 2012), due to a sustained increase in consumption and decrease in production from domestic sources.
Data compiled by the apex trade body, the Solvent Extractors’ Association (SEA), showed total veg oil imports jumped 17.5 per cent to 10.19 million tonnes in 2011-12 compared to 8.67 mt in the corresponding period last year. Import of edible oil (both crude and refined) shot up to 9.98 mt this year from 8.37 mt last year. As a consequence, India’s reliance on imported edible oil increased to 60 per cent, at an estimated domestic consumption of 16.5 mt this year, compared to 54 per cent on a consumption of 15.5 mt last year.
Non-edible oil imports for use in soaps, detergent making and other purposes, in contrast, declined by 30 per cent to 0.21 mt this year compared to 0.3 mt last year. The decline is largely due to a slowdown in the fast moving consumer goods sector.
| DEMAND SURGE Vegetable oil imports (in mn tonnes) | ||||
| Year* | Edible | Vanaspati | Non-edible | Total |
| 2006-07 | 4.71 | 0.25 | 0.63 | 5.59 |
| 2007-08 | 5.61 | 0.05 | 0.65 | 6.31 |
| 2008-09 | 8.18 | 0.02 | 0.46 | 8.66 |
| 2009-10 | 8.82 | NA | 0.42 | 9.24 |
| 2010-11 | 8.36 | NA | 0.30 | 8.67 |
| 2011-12 | 9.98 | NA | 0.21 | 10.19 |
| * November–October Source : The Solvent Extractors’ Association | ||||
Domestic oilseed production has been falling continuously, due to lower productivity. Shifting to other crops due to better returns has also affected output. A ministry of agriculture report said oilseed yield fell five per cent to 1,135 kg a hectare (ha) in 2011-12 from 1,193 kg a ha in 2010-11, mainly on account of a decline in yields of soyabean, groundnut and rapeseed/mustard. Consequently, oilseed output fell eight per cent to 30.01 mt from 32.47 mt a year before. Overall production of veg oils was down about 700,000 tonnes due to a reduced oilseed crop in 2011-12.
India’s edible oil consumption also increased substantially in the year gone by, on a subdued price trend. SEA analysis said an overall population growth of 1.7 per cent, coupled with a three per cent estimated rise in per capita consumption, created fresh demand of 1.25 mt accumulatively during the last oil year. Also, both Malaysia and Indonesia, the two global leaders in veg oil production, pushed palm oil exports to India during the year, to reduce their excessive stock burden.