Agri Business

Veg oil imports touch record high in May

Our Bureau Mumbai | Updated on January 24, 2018 Published on June 12, 2015

BL13-VEG_OIL

Vegetable oil imports have touched a record high of 13.71 lakh tonnes in May compared to 10.33 lakh tonnes registered in the same period last year due to sops offered by the exporting countries.

The high price of soyabean and lower realisations also resulted in lower crushing in the domestic market and lesser availability of edible oil in the market. This resulted in higher imports of soybean oil and sunflower oil, said BV Mehta, Executive Director, Solvent Extractors’ Association of India.

Import of refined palm oil at 2.75 lakh tonnes last month was at the highest level since last years. The two largest palm product producing countries Indonesia and Malaysia have been pushing exports to India by removing the export duty a the demand for crude palm oil has plunged due to lower demand from bio diesel producers. The two countries have dropped price to reduce their burgeoning stock, he said.

The overall import of vegetable oil in the first eleven months of the oil year was up 26 per cent at 78.33 lt (61.98 lt).

As of May-end the stock of edible oil at various ports is estimated at 7.50 lt which includes 2.80 lt of crude palm oil, 1.40 lt of refined palm oil, 1.90 lt of degummed soybean oil, 1.30 lt of crude sunflower oil and 10,000 tonnes of Rapeseed (Canola) Oil. Another 15lt is in the pipelines.

Total stock at the ports and in pipeline increased to 22.50 lt from 21 lt. India’s monthly requirement is about 16 lt against the current inventory of over 22.5 lt, equivalent to 43 days requirements.

In last one year, refined palm oil prices were down 23 per cent at $667 a tonne while crude palm oil dipped 26 per cent to $647 a tonne. Similarly, crude soybean oil and sunflower oil dropped 16 per cent and crude sunflower oil three per cent to $788 a tonne and $917 a tonne, respectively. However, rupee depreciated 7.5 per cent against dollar, partially wiping out the benefit of fall in prices.

Published on June 12, 2015
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