| Trade unaffected despite 100 per cent rise in international prices.
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| Despite a near-double rise in prices of edible oils globally, imports in February rose a whopping 186 per cent year-on-year riding on lower customs duties on palm and soy oils and base import prices which have remained unchanged for over a year.
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According to the statistics available from the Solvent Extractors' Association of India (SEAI), the import of edible oils during February stood at 430,992 tonnes as compared with 150,927 tonnes in February last year. On the other hand, imports of non-edible oils shot up by 342 per cent at 84,237 tonnes as against last year's 19,056 tonnes.
TOUCHING NEW HIGHS
Import of Vegetable Oils (Nov'07 - Feb'08)Cash price | | Month | Edible Oil | Non-edible Oil | Total | | Nov.,2007 | 347,320 | 80,592 | 427,912 | | Dec.,2007 | 276,782 | 28,494 | 305,276 | | Jan.,2008 | 457,601 | 55,652 | 513,253 | | Feb.,2008 | 430,992 | 84,237 | 515,229 | | Nov'07 - Feb'08 | 1,512,695 | 248,975 | 1,761,670 | | Nov'06 - Feb'07 | 1,083,141 | 177,848 | 1,260,989 |
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Forty per cent of the country's domestic requirement is met via by imports. With increasing salaries and high disposable incomes, the consumption has witnessed a surge in demand of vegetable oils.
| (Price in US$/CIF Indian Port / Tonne) | | Oils | Nov'07 | Dec'07 | Jan'08 | Feb'08 | Feb'07 | % rise | | RBD Palmolein | 982 | 988 | 1043 | 1240 | 623 | 99% | | Crude Palm | 930 | 936 | 1,038 | 1173 | 591 | 98% | | Crude Soybean | 1,088 | 1,119 | 1,243 | 1412 | 678 | 108% | | CrudeSunflower | 1,421 | 1,419 | 1,630 | 1753 | 690 | 154% |
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| According to commodity analysts, the share of import could reach 45 to 50 per cent in coming years as domestic production is not keeping pace.
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| Domestic prices of edible oil have increased 10-28 per cent since January, 2008. Refined soybean oil, which was quoted at Rs 54,000 a tonne on 2 January, is available at Rs 69,000 a tonne, up 27.78 per cent.
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| Similarly, prices of groundnut oil have jumped 13.08 per cent, rapeseed (10.34 per cent), RBD Palmolene (25.10 per cent) and sunflower oil (19.69 per cent).
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| "Despite reduction in duties and freeze in tariffs, the rates have shot up sharply. Rupee appreciation softened the blow otherwise prices would have been 15 per cent higher," said B V Mehta, executive director, SEAI.
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| Since November, 2007, the imports of vegetable oils (edible and non-edible together) have soared by 40 per cent. This is despite the fact that the peak domestic crushing season is in progress. |
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