Vegoil imports surge 21% in January

Vegetable oil imports were up 21 per cent last month at 11 lakh tonnes (lt) against 9 lt in the same period a year ago. Shipments of vegetable oil into the country include 10.82 lt of edible oil and 12,796 tonnes of non-edible oil.

In the last three months, vegetable oil imports have been increasing as oil palm exporting countries such as Indonesia and Malaysia removed export duty to reduce their burgeoning inventory.

The sharp fall in crude oil prices has led to reduced demand for crude palm oil for use as bio-diesel.

In India, soyabean crushing was impacted due to lower realisation and high input cost. This apart, oil meal prices have crashed in the international markets, squeezing oil mills’ profitability further.

Most oil mills now prefer to import vegetable oil rather than processing soyabean available in the domestic markets.

As of February 1, the edible oil inventory at various ports was estimated at 745,000 tonnes consisting of 425,000 tonnes of crude palm oil, 65,000 tonnes of refined palmolein, 120,000 tonnes of degummed soyabean oil, 120,000 tonnes of crude sunflower oil and 15,000 tonnes of rapeseed (canola) oil.

The overall inventory, including the stock of 13.50 lakh tonnes in pipeline, is expected to touch 20.95 lt.

The Association has lowered the inventory estimate for January to 20.70 lt (20.85 lt).

Refined palm oil prices in February were up marginally at $687 a tonne compared to $679 in January, however it was down 17 per cent compared with $830 in February last year.

Crude palm oil prices were up at $665 ($657 in January) while that of crude sunflower oil increased to $864 ($842 ). However, crude sunflower oil was down at $867 ($879 ).

Imports in the first three months of oil year 2014-15 were up 17 per cent at 34 lt.

Non-edible oil imports in the oil year were up marginally by seven per cent at 71,595 tonnes (66,644 tonnes).

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