Vegetable oil imports to rise 18% to 57 lakh tonne

The country's vegetable oil imports are likely to touch 57.5 lakh tonne in oil year 2004-05 (November-October), a rise of 18 per cent from last year's 48.5 lakh tonne, said industry officials.

Of the 57.5 lakh tonne, edible oil is likely to account for about 51 lakh tonne, registering a 16 per cent increase. Last year, only 44 lakh tonne of edible oil was imported, said B V Mehta, executive director of the Solvent Extractors' Association of India.

"The rise in total imports is owing to a 100 per cent increase in crude soyoil arrivals following softer global prices," said a Mumbai-based trader.

Further, the share of crude oil in total imports is on a decline this year to about 60 per cent from 79 per cent last year with soft oils (led by soyoil) seeing a rise to 40 per cent from last year's 21 per cent.

This year, though soft oil imports is seen growing higher than palm oil imports, the latter still reigns supreme owing to lower prices. However, the price benefit is fast reducing as the difference between crude palm oil prices and soyoil (the latter being the expensive one) is down to $65/tonne compared with $100 tonne in January this year.

Non-edible oils import have also risen this year and are likely to touch 4 lakh tonne, compared with 2.3 lakh tonne last year, as per the SEA data. As for vanaspati, imports are likely to be about 2-2.5 lakh tonne this year compared with 2.2 lakh tonne last year. A section of the industry is hopeful that the total vegetable oil import figure may even touch 58.5 lakh tonne, riding on vanaspati imports touching 3.5 lakh tonne this year, said Sandeep Bajoria, president of the Confederation of Oil Industry and Trade.

The current stocks at the Indian ports are estimated to be about 3.5 lakh tonne, including 1.9 lakh tonne of crude palm oil and 1.4 lakh tonne soyoil. Industry experts do not see this as a threat to the market as the edible oil monthly demand of the country is about 9 lakh tonne.

Further, the Indian market is quite conservative keeping minimal requirement in its pipeline and thus, stocks pile up at the ports.

Traders, however, stress that this may result in the market sentiment turning bearish.

POURING IN

Out of 57.5 lakh tonne, edible oil is likely to account for about 51 lakh tonne registering a 16 per cent increase

The rise in total imports is due to a 100 per cent increase in crude soyoil arrivals following softer global prices

Non-edible oils import have also risen this year and are likely to touch 4 lakh tonne, compared with 2.3 lakh tonne last year

The current stocks at the Indian ports are estimated to be about 3.5 lakh tonne, including 1.9 lakh tonne of crude palm oil and 1.4 lakh tonne soyoil