The Hindu Business Line : Oil imports likely to continue despite record oilseeds output

WITH a rabi season (summer harvest) output of an estimated 99.6 lakh tonnes and kharif season output (revised down) estimated at 138.9 lt, total oilseeds production in the country for the year 2003-04 is a near record 238.5 lt (last year 149.6 lt).

The trade estimate was collated and released by the apex body of the oilseeds sector - Central Organisation for Oil industry and Trade (COOIT) - during the national seminar held over the weekend in the capital.

The highlight of the season's harvest was the doubling of the rapeseed/mustard crop to 67 lt from last year's drought-affected 33 lt with Rajasthan contributing a record 27.5 lt followed by Uttar Pradesh (11 lt) and Punjab/Haryana combined (10 lt).

Groundnut in-shell output in the summer season was an estimated 17 lt (14.7 l.t.) while sunflowerseed was placed at 8.9 lt. Among others were sesamum (2.5 lt), safflowerseed (kardi - 1.9 lt) and linseed (2.3 lt).

Interestingly, the oilseeds production estimates of the trade and the Government for 2003-04 show a large variation.

The Ministry of Agriculture recently announced 249.7 lt as the output for the current year comprising 166.9 lt in the kharif and 82.9 lt in the rabi season.

Specifically, the Government's estimate for rapeseed/mustard (58.8 lt) is at a considerable variance with the trade's 67 lt. In their private forecasts some traders pitched the production figure even higher.

Earlier, in his welcome address, Mr D.P. Khandelia, president of COOIT highlighted the need for attaining self-sufficiency in edible oil through a more vigorous thrust on increasing oilseeds production and productivity. He wanted the industry associations to be consulted before the policymakers made any significant decision impacting business.

The Chief Guest, Mr S.K. Tuteja, Secretary, Ministry of Food, Consumer Affairs and Public distribution, assured the industry and trade representatives present that the Government had an open mind on the issues impacting the sector and promised to examine the grievances.

With large production and strong prices, the mood among traders at the conference was upbeat.

Generally, the firm trend in the vegetable oil market - both domestic and global - was expected to continue for several months ahead until the production prospects of the next crop in northern hemisphere (mainly US, China and India) became clear by September.

Edible oil imports are expected to continue strongly despite a major surge in domestic production. According to Solvent Extractors' Association of India, 11.5 lt of various oils arrived in the country between November 2003 and February 2004, virtually unchanged from same period last year.

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