Veg oil inventory up 8.7% in a month

Vegetable oil inventory, at various ports and in pipeline, jumped 8.7 per cent in the last one month, due to sporadic rise in domestic crushing and imports.

Data compiled by the Mumbai-based trade body, Solvent Extractors’ Association (SEA), showed the total inventory rose to 1.5 million tonnes (mt) as on October 1, compared with 1.38 mt on September 1. The current stock of edible oils at various ports as on October 1 was estimated at 790,000 tonnes (crude palm oil 420,000 tonnes, RBD palmolein 70,000 tonnes, degummed soybean oil 225,000 tonnes, crude sunflowerseed oil 72,000 tonnes and cotton oil 3,000 tonnes) and 710,000 tonnes in the pipeline.

 

In the last two months, domestic production of vegetable oil rose significantly, due to an increase in processing of soybean seed and rapeseed. Also, imports surged tremendously during the period.

Vegetable oil imports rose a marginal six per cent in September due to rising demand from consumer industries. Imports during September were 960,752 tonnes, compared with 905,192 tonnes in the corresponding period last year. Overall imports during November 2009-September 2010 were 8.41 mt, compared with 7.98 mt in the year-ago period, registering an increase of five per cent.

During November 2009-September 2010, RBD palmolein imports were 1.08 mt as against 1.15 mt in the year-ago period. Palm oil imports reduced to 5.88 mt as compared to 5.99 mt during the same period last year.

The narrow price difference between crude palm oil and soybean oil (SBO) prevailed in the last few months, encouraging larger import of SBO in recent months. Non-edible oil imports in September were 18,495 tonnes as against 40,296 tonnes during the corresponding period last year. Overall imports of non-edible oil during November 2009-September 2010 declined 10 per cent to 365,910 tonnes compared with 407,389 tonnes during the same period last year. The rupee appreciation in the last three months also supported the import of vegetable oils, which is evident from the table of average imported edible oil prices.