More edible oil imports likely as global prices fall, says expert

The falling price of edible oils in global markets is likely to soften the impact of a depreciating rupee on prices in India, triggering increased imports this year, an expert said on Thursday.

RBD palmolein, crude palm, soyabean and sunflower oil are imported by India to meet growing consumption of edible oils.

“The importers have been saved to a certain extent as prices of these oils have fallen in the international markets. Since March 2013, the rupee has depreciated by around 20 per cent, while prices of imported oils have declined by 8-14 per cent, except in case of crude palm oil which has seen a fall of 4 per cent,” according to Raju Choksi, Vice-President (Agro-Commodities), Anil Nutrients Ltd, a subsidiary of the Rs 650 crore agro and food processing major Anil Ltd.

If international prices of edible oils fall further, India may continue to import large quantities of edible oils. Overall, the depreciating rupee has led to a decline in total share of palm oil imports to 66 per cent in July against average of 81 per cent during the November 2012 – July 2013 period, he said.

Higher fall in currency rates has impacted imports of palm oil in the last few months. However, during the November 2012-July 2013 period, the palm oil imports have grown by nearly 20 per cent to 6.33 million tonnes (mt), the data from Solvent Extractors Association showed. Soft oil, the major contribution of which comes from soyabean oil and sunflower oil, have seen imports falling by 18 per cent to 1.49 mt, the data showed.

Due to good monsoon this year, the area under kharif oilseed cultivation has increased by 2.5 million hectares over last year and India can have a bumper oilseeds crop, he said, adding there may be a short lull in imports during the November-to-January period when crushing will be at a peak in India.

Choksi said India’s edible oil imports during oil marketing year of 2011-12 stood at 9.9 mt.

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