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G. Chandrashekhar

Mumbai , Jan. 1

THERE was a considerable decline in the volume of edible oil imported last month following improved availability of indigenous oils.

According to preliminary arrival data furnished to Business Line by the industry portal Oilmandi.com, 2.34 lakh tonne (lt) of various oils flowed into the country through various ports in December. Imports comprised broadly, 1.07 lt. of crude palm oil; 63,200 tonne of refined palmolein; 43,500 tonne of crude palmolein; and 10,200 tonne of degummed soyabean oil. In addition, 4,900 tonne of crude sunflower oil and 5,400 tonne of crude palm kernel oil arrived.

In November, imports totalled 3.13 lt. Indian market conditions are being closely watched by international traders. Despite a large crop, oilseed market continues to face boom conditions.

Both soyabean and groundnut prices are at attractive levels for farmers. In the Mumbai wholesale market, groundnut oil price is only marginally less than Rs 500 per 10-kg lot, far above the expectation of around Rs 420-450 per 10 kg.

However, there are signs that the market would come off slightly. Similarly, soyabean oil prices too are high because of a very firm bean market — both here and abroad — and slowdown in soya oil imports.

The palm market too is strong despite a slowdown in Indian purchases, because there surely are other markets to service. However, India may enter the market later this month to cover import requirements of next two months once the pressure of domestic supplies eases.

Experts believe it is demand that will drive the market as supply conditions are known. However, weather in South America and North India will play a crucial part in determining the direction of the market over the next two months. The market is also wondering whether the Government would change the tariff values once again.

If prices continue to remain firm, there is every possibility of a duty reduction given the current political thinking of general elections in April or May.

More Stories on : Oilseeds & Edible Oil | Exports & Imports

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