The Hindu Business Line : Edible oil imports surge 20 pc

This follows the strengthening of domestic prices in recent weeks as a result of which negative import parities in most oils have been wiped out and importers are beginning to look at the market in a more positive mood.

In March, arrivals aggregated the season's high of 4.55 lakh tonnes, more than double the previous month's two lakh tonnes. Crude oils continued to be the choice for Indian importers in view of the duty structure.

Imports last month comprised mainly 1.84 lakh tonnes of crude palm oil; 1.26 lakh tonnes of crude olein and 1.25 lakh tonnes of degummed soyabean oil. About 15,000 tonnes of crude sunflower oil and 5,000 tonnes of crude palm kernel oil also arrived, according to quick estimate made available to Business Line by Oilmandi.com, the vegetable oil industry portal.

Edible oil imports during five months since November 2002 totalled 15.8 lakh tonnes, 20 per cent higher than the 13-lakh-tonnes seen during the same period last year.

Projected arrivals during the next three months (April to June) are four lakh tonnes each month. Notwithstanding the current tariff value of $600 a tonne on degummed soyabean oil, commitments in excess of two lakh tonnes have been made and shiploads are expected to arrive in the next two months.

Efforts to bring the tariff value down to realistic levels have begun too, with importers representing to the Government for a transparent system.

Indian importers are also watching the palm oil market closely and at every dip at which some purchases are being made, according to traders.

A well-known global commodity derivatives research agency had recently pointed out that the widening discount of palm oil versus soyabean oil had encouraged Indian purchases of palm oil, permitting the firming up of palm oil prices and pressuring soyabean oil prices late last month.

India was an active buyer of palm oil for April position, possibly in a move to take advantage of the price weakness and to fill-up pent up demand that developed when buyers were holding back, in anticipation of a reduction in customs duty in the Union Budget; however, the expectation did not materialise.

Both China and India have been buying South American soyabean oil, firming the basis levels. Independent research suggests soyabean oil prices are poised to firm up over the next few months.

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