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Imports of vegetable oil surges by 18% at 92 lakh tonnes

16 Oct 2012 Evaluate

Vegetable oil imports soared by 18% to approximately 92 lakh tonnes (LT) in the first 11 months of the current oil year on the back of rise in inbound shipments of refined palm oil, sunflower and canola oil. The country imported 89,63,353 tonnes of edible oil and 1,93,104 tonnes of non-edible oil in the first 11 months of the 2011-12 against 74,93,660 tonnes of edible and 2,79,524 tonnes of non-edible oil in the same period last year.

As per the Solvent Extractors Association of India (SEA) ,during Nov-Sept 2011-12, the import of RBD palmolein was up by 84% at 15,15,812 tonnes compared to 9,61,936 tonnes during the same period of last year. It added that the share of refined oils increased to 17%, while that of crude oil decreased to 83% during the Nov-Sept period of 2011-12 oil year.

Sunflower oil is a major contributor in meeting demand for soft oil, as sunflower oil prices have been attractive compared to soybean oil. At present the premium on sunflower oil over soybean oil is just $11 per ton. SEA said that import of sunflower oil rose to 10,49,181 tonnes in the Nov-Oct 2011-12 compared to 7,39,173 tonnes in the same period last year. India has started importing canola oil and bought about 90,000 tonnes during last 8 months compared to 3,601 tonnes during same period of last year, mainly due to smaller local crushing of rapeseed due to inconsistency.

The import of vegetable oils improved by 9% in September this year at 9,93,912 tonnes compared to 9,12,341 tonnes in the same month last year. The total stock of vegetable oil, both at ports and in pipelines declined by 100,000 to 14,50,000 tonnes as of October 1 due to lower local production and festival demand compared to last month.

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