Veg oil imports decline 12.5% in April on high domestic output

Vegetable oil imports dipped 12.5 per cent in April compared to the corresponding period last year.

The decline was on the back of higher production of oilseeds during kharif and rabi seasons, increased crushing activity which boosted local availability, good crushing parity due to high price of oil and export demand for oilmeals and negative margin in import and high prices of edible oil. According to the data compiled by the Solvent Extractors Association of India, the import of vegetable oils in April was 475,000 tonnes compared to 543,000 tonnes in April 2010.

The overall import of vegetable oils during the oil year 2010-11 (oil year is from November to April) was 3.6 million tonnes compared to 4.3 million tonnes during the same period last year, falling 16 per cent. The current stock of edible oils as on May 1 at various ports and in pipelines was estimated at 1.2 million tonnes compared to 1.3 million tonnes as on April 1.

During November 2010 to April 2011, import of RBD Palmolein was down by 28 per cent. Palm oil imports were 2.7 million tonnes compared to 3.2 million tonnes during the same period last year. However, import of sunflower oil increased to 412,000 tonnes from 300,000 tonnes as domestic supply was weak.

The rupee appreciation in last few months supported the import of vegetable oils to some extent.

But on a month-on-month basis, the country's vegetable oil imports in April rose 9 per cent from 435,735 tonnes in March as the local oilseeds harvest season ended .