The Hindu Business Line : Vegoil imports down 18%

Import of vegetable oils during oil year November 2005-October 2006 is likely to witness a decline of nearly 10 lakh tonnes. It is probably for the first time in recent years that such a large year-on-year import decline has been noticed.

Arrivals during first 11 months (till September 2006) totalled 37.8 lakh tonnes (lt) compared with 46.3 lt during the same period the previous year, according to data compiled by the Solvent Extractors Association of India (SEA).

Arrivals during October are projected between 3.5 and 4.0 lt taking the annual total of the current oil year to 41.0 lt versus 50.4 lt in 2004-05 oil year.

Reasons

Year round crushing of rapeseed by procuring agency NAFED and supply of rapeseed oil in sufficient quantities in the domestic markets ensured comfortable availability and reduced the dependence on imports, said Mr Pradeep Desai of Palmtrade Services.

In addition, there was no rise in per capita consumption.

Decline in total arrivals is accounted for by a fall in refined palmolein, crude palm oil and soyabean oil imports, with soyabean oil taking a hit of 3.4 lt and palm group of oils taking a bigger hit of 5.5 lt.

The projected imports of around 41 lt for the year include coconut and palm kernel oil of about 50,000-60,000 tonnes of which only 5,000-10,000 tonnes are used for edible purposes

This will further push down the edible oil import number, says Mr Desai.

On the whole, there has been a decline of 18 per cent in imports of edible oil during the first 11 months of the current oil year.

Unpredictable policy measures of the Government have kept the importers in realm of uncertainty in importing oils, Mr Desai said, adding that during the year rupee value has almost been below 46 to a dollar adding to factors making imports unviable.

However, with increase of per capita consumption in the coming years, dependency on imports may progressively increase, says Mr Desai.

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