Veg oil import at all-time high in last 12 months

Import of vegetable oils during October 2013 is reported down by 1.36%

Vegetable oil import in the oil year gone by (November 2012-October 2013) was at an all-time high of 10.6 million tonnes, up 4.8 per cent from the previous year’s 10.1 mt, on the back of rising domestic demand, according to data released by the Solvent Extractors’ Association (SEA).

In the current oil year (Nov ’13 to Oct ’14) as well, domestic demand for vegetable oil is expected to continue to increase, by at least 500,000 tonnes, on rising demand.

Overall production of vegetable oils was almost stagnant at eight mt in 2012-13, compared to 8.1 mt the previous year, while consumption rose three per cent, due to increase in per capita consumption and population growth (1.76 per cent). The lower price of vegetable oils globally boosted import.

The inverted export duty structure in Indonesia and Malaysia also added to import of RBD palmolein, which substantially increased during the year. Import of refined palmolein during April-October 2013 jumped to a little over 1.6 mt, compared to 750,000 tonnes during the same period of last year.

India meets a little over 50 per cent of domestic demand through import. Palm oil is imported from Malaysia and Indonesia, while soyabean oil comes from Argentina and Brazil.

“India’s demand for edible oil is on the rise and even in the current oil year, we will import at least half a million tonnes. Imports of vegetable oil will also depend on the domestic production of oilseed,” said B V Mehta, executive director of SEA.

If the price remains low internationally, then import will be higher, he added.