GM norms unlikely to hit soyoil imports

The genetically modified import norms will not hit the country's soyoil imports this year, said a senior official of Cargill India.

"The imports registered in the month of April may be slightly lower as some big importers decided to not spare their vessels owing to the new import norms of genetically modified products. Overall, there is no trouble in vessel availability and imports are on track," the official said.

Industry sources suggest that 60-65 per cent of soyoil imports are done by Adani, Cargill India, Ruchi Soya Industries and Gokul. There was no problem in vessel availability but just a slight delay in vessel discharge.

Further, many importers were considering it unviable to block vessels for import in case of new norms. As per the norms, import of soybean oil, be it crude or refined, derived from genetically modified soybean must be declared as "genetically modified".

The rule would be applicable from July 7, 2006 as the Directorate General of Foreign Trade has deferred it for three months.

As per rules, since December 1989, the industry was required not to sell, import or use GM products without the approval of Genetic Engineering Approval Committee (GEAC), under the ministry of environment and forests.

Cargill India had applied for a clearance to GEAC for commercial import and marketing of GM foods. Company, sources said, they were given a patient hearing earlier this month and have been asked to go back to GEAC with further clarifications.

Domestic soyoil imports constitute about 35 per cent of vegetable oil imports and are sourced from Brazil, Argentina and the US.

According to Sandeep Bajoria, president of the Central Organisation of Oil Industry and Trade, "India's soyoil imports are likely to touch 1.75 lakh tonne in April, 2.5 lakh in May and 3.5 lakh in June.

The industry would not only make up for the slight slowdown in April but would also be prepared in case the GM issue leads to a slowdown of imports in July".

"India is likely to import 1.75 lakh tonne in April, 2-2.25 lakh in May and 2.25-2.5 lakh in June," said Bajoria.

Despite duty differential, crude palm oil (CPO) imports are unlikely to gain at the expense of soyoil, said Bajoria, as globally the consumer is shifting towards the "healthier" oil.

As per industry estimates, India is likely to import 47 lakh tonne of vegetable oil this oil year (November-October), compared with 50 lakh tonne last year. India imports about 45 per cent of its total vegetable oil demand.