Vegetable oil imports to touch record 15 million tonnes in 2015-16: SEA

Domestic demand is expected to rise to 20-21 million tonnes, according to SEA's executive director

Country's vegetable oil imports may rise to record 15 million tonnes in the current marketing year ending October on increasing domestic demand.

The country had imported 14.61 million tonnes in the 2014-15 oil marketing year (November-October).

"We estimate import of about 1.2-1.3 million tonnes in the remaining three months of the current oil year. So, the overall vegetable oil imports will be 15 million tonnes in 2015-16," Solvent Extractors' Association of India (SEA) Executive Director BV Mehta told PTI.

Domestic demand is expected to rise to 20-21 million tonnes, he added.

Earlier, the association had estimated imports to rise at around 15.5 million tonnes, Mehta said.

 

With rising imports of refined edible oils, Mehta demanded that the difference between the crude and refined edible oils should be doubled to 15 per cent from current 7.5 per cent.

At present, import duty on crude edible oil is 12.5 per cent and those on refined edible oil is at 20 per cent.

Imports of vegetable oils (comprising edible and non-edible oils) fell by 24 per cent in July to 1.14 million tonnes due to under utilisation of capacity by the domestic refining sector.

In the first nine months of the current marketing year, vegetable oils imports rose by five per cent to 10.9 million tonnes, compared to 10.35 million tonnes in the corresponding period of the previous year.

Out of total imports during the November-July period, edible oils comprised 10.78 million tonnes and non-edible 1.15 million tonnes.

Import of RBD palmolein during November-July period of 2015-16 oil year increased to 1.984 million tonnes from 1.098 million tonnes in the year-ago period and is expected to increase further in coming months.

"The alarming increase in import of RBD Palmolein is seriously hurting the domestic refining industry. This situation has arisen due to the fact that currently, the landed cost of RBD olein (finished product) is same as that of Crude Palm Oil (raw material)," SEA had said earlier this month, adding, "Due to this situation, the domestic refining industry is facing severe crisis of under utilisation of capacity and is on the verge of closure."