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M.R. Subramani

Vegoil imports up 11 per cent during Nov-Dec

Chennai , Jan. 16

Edible oil imports in the first two months of the current oil year (November 2006-October 2007) increased by 11 per cent to 6.19 lakh tonnes compared with 5.47 lakh tonnes during the same period a year ago. The imports witnessed a rise of 67 per cent during December at 3.76 lakh tonnes.

But there is another side to the import story. What has actually happened is that import of soft oils is down by nearly 45 per cent during the period to 96,426 tonnes (1.71 lakh tonnes last year).

According to the Solvent Extractors Association of India (SEA), soyabean oil, which makes up most of the soft oil imports, declined to 60,732 tonnes during the review period against 1.55 lakh tonnes during the year-ago period.

When contacted, Mr B.V. Mehta, Executive Director, SEA, said the shift was mainly since consumers had shifted to rapeseed oil from soyabean oil.

"Thanks to the stocks with Nafed (National Agricultural Cooperative Marketing Federation), there has been a constant supply of 4-5 lakh tonnes of rapeseed for crushing. It has helped in availability of two lakh tonnes of oil every month," he said.

Higher imports

Edible oil imports are seen surging this oil year in view of lower oilseeds production, both during kharif and rabi. The production has been estimated at 247 lakh tonnes against 277 lakh tonnes last year. Vegetable oil imports, including vanaspati and for non-edible purpose, are seen topping 60 lakh tonnes this year against around 50 lakh tonnes last year.

The projections of a fall in oilseeds production this year have led to a firm trend in edible oil prices. Soft oils such as sunflower and soyabean have gained by over 10 per cent between October and January 15.

Cheaper option

Currently, refined soyabean oil is quoted at Rs 460 for 10 kg, while sunflower oil is ruling at Rs 560. On the other hand, rapeseed oil is quoted at Rs 455 for 10 kg, making it cheaper than other soft oils.

Nafed stocks

Nafed has good stocks of rapeseed and currently, it is projected to have a stock of 14 lakh tonnes. This is likely to decline to less than five lakh tonnes in March, when arrivals of rapeseed that is a rabi crop begin.

"Last year, the oilseeds crop was excellent and there was good supply between November and February. This time, with both kharif and rabi being down, there is supply constraint," Mr Mehta said.

In general, the area under oilseeds is also lower this year as farmers have found it remunerative to switch over to wheat and pulses.

"Area under rapeseed itself is down by over 10 lakh hectares this year," said Mr Mehta.

According to the Agriculture Ministry, the area under rapeseed/mustard has declined to 66.27 lakh hectares from 74 hectares last year.

The import statistics also throw an interest fact of a bias towards palm oil. Palm oil imports have accounted for 84 per cent of the total shipments into the country against 69 per cent during the same period last year.

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

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