India's overall imports of vegetable oil during November 2008 to May 2009 jumped by 70 per cent to 5,043,185 tonnes from 2,973,393 tonnes for the same period of last year, the Solvent Extractors' Association of India (SEA) said in a statement here.
Import data compiled by the SEA for the import of vegetable oils for first seven months of the oil year 2008-09, beginning with November 2008 shows an unusual increase in import volume.
Import during May 09 was also more than double and is reported at 751,097 tonnes compared to 361,564 tonnes for May 08, the release said.
Palm products have appreciated by about $230 since November 08, still with nil duty is attractive and import is likely to continue over half a million tonnes per month apart from about 150,000 tonnes of soft oils and expecting about 6.5 to 7.0 lakh tons of shipment per month during next five months, SEA said.
Looking to the current trend, import during current year likely to be 75 lakh tonnes of edible oil and 5.0 lakh tonnes of non-edible oils for the period November 08 to October 09.
The higher import was mainly due to lower than expected domestic production of oilseeds, considerably increase in domestic consumption due to reduced domestic prices and also decline in world market prices coupled with the reduction/withdrawal of import duty on edible oils by the Central Government in November 08 and March 09 has boosted the import, it said.
Edible oil prices had touched the bottom during November-December 08, however prices recovered in last few months, still prevailing price both in international and domestic markets are lower compared to June 08 price, which may tempt the Government to consider to impose duty in forthcoming budget to be presented on July 3, 2009 to check the unabated import of edible oils, and thereby encourage farmers to expand area under oilseed cultivation and raise the revenue, the Association said.
