Amid apprehensions that the government may not levy import duty on vegetable oil imports as demanded by the industry in order to avoid inflationary pressure, the commodity’s import stabilised in July after logging a sustained growth of 66.5 per cent during the first eight months of the current oil year (November-October).
The total import of vegetable oil in July was 596,024 tonnes compared to 571,395 tonnes in the corresponding period last year.
According to data released by the Solvent Extractors’ Association (SEA), its import in July recorded a marginal growth of 4 per cent as traders avoided creating a stockpile.
The import of vegetable oil was rising till June amid fears that the government might levy an import duty of around 37.5 per cent as demanded by the industry. But, the government has denied adopting any such move, discouraging stockists from placing any fresh orders as prices were unlikely to stay firm in the background of high palm oil production in Malaysia.
During the third quarter (May-July), edible oil import rose 39 per cent to 2.13 million tonnes compared to 1.53 million tonnes in the corresponding quarter last year.
During the current oil year, total vegetable oil imports have risen 55 per cent to 6.42 million tonnes from 4.14 million tonnes last year. Poor rains so far this year are likely to affect kharif planting and its yield subsequently. This is likely to result in less production of oilseeds and their lower domestic availability during the next oil year.
Groundnut acreage as on August 6 has been the most affected at 35.7 lakh hectare compared to 45.5 lakh hectare in the corresponding period last year. Soybean acreage increased marginally to 93.7 lakh hectare compared to 91.3 lakh hectare last year. Cotton has gone up considerably and reported at 92.9 lakh hectare compared to 79.5 lakh hectare.
India has imported around 5,000 tonnes of cottonseed oil in July for the first time since 2001. Import of refined oil during November 2008 to July 2009 is reported at 896,067 tonnes compared to 283,172 tonnes in the corresponding period a year ago.
