Veg oil imports cross 10 million tonne-mark in 2011-12

India's vegetable oil imports surged by 17 per cent crossing 10 million tonnes mark in the 2011-12 marketing year that ended last month on strong domestic demand as per industry body Solvent Extractors Association of India (SEA).The country had imported a total of 8.7 million tonnes of vegetable oil comprising both edible and non-edible oils in the 2010-11 marketing year (November-October). The total import of edible oil during November 2011 to October 2012 is reported at 99.81 lakh tonnes, doubled in six years.

According to Solvent Extractors Association of India (SEA), "Local consumption increased by up to 8,00,000 tonnes due to a rise in per capita consumption and population growth. Lower price of vegetable oils also boosted consumption during the year." 

The overall import of vegetableoil has increased by 15.2 lakh tonnes (17.5%) during oil year 2011-12(Nov.-Oct) over the previous year. The main reasons for increase in import of vegetable oil are:
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i) The overall production of veg. oils was down by about 7.0 lakh tonnes due to reduced oilseed crop during 2011-12,

ii) Local consumption increased by about 7.5 to 8.0 lakh tonnes due to increase in per capita consumption (3%) and population growth (1.76%). Also lower price of veg. oils boost the consumption of veg. oils during the year.

iii) Closing stock of imported veg. oils as on 31st October increased by 2.60 lakh tonnes to 15.70 lakh tonnes.

iv) Malaysia and Indonesia pushed the palm oil export into India during the year to reduce their excessive stock burden.

v) Due to inverted export duty structure by Indonesia, import of RBD Palmolein substantially increased during the year.

vi) The overall consumption increased by about 12.5 lakh tonnes, leading to higher import during the year

Current stock of edible oils as on 1st November, 2012 at various ports is estimated at 920,000 tonnes (CPO 600,000 tonnes, RBD Palmolein 95,000 tonnes, Degummed Soybean Oil 125,000 tonnes, Crude Sunflower Oil 85,000 tonnes and Canola Rape Oil 15,000 tonnes) and about 650,000 tonnes in pipelines. Closing stock increased by 2.60 lakh tonnes at the end of the year and reported at 15.70 lakh tonnes.

During Oil Year 2011-12(Nov-Oct) Palm Oil import increased to 76.69 lakh tonnes compared to 65.47 lakh tonnes during the last year and the same time soft oil import also increased to 23.12 lakh tonnes, consisting of 10.79 lakh tonnes of soybean oil, 11.35 lakh tonnes of sunflower oil, 0.91 lakh tonnes of rape oil and 0.07 lakh tonnes of other soft oils compared to 18.24 lakh tonnes during the same period of last year.

India's import of vegetable oils up by 18%

As per the latest data released by the Solvent Extractors’ Association of India (SEA), import of vegetable oils (edible & non-edible) during first eleven months of current oil year indicates 17.80% increase in import. Import during September 2012 is reported at 993,912 tonnes compared to 912,341 tonnes in September 2011, consisting of 976,417 tonnes of edible oils and 17,495 tonnes of non-edible oils i.e. up by 8.94%. The overall import of vegetable oils during November 2011 to September 2012 is reported at 9,156,457 tonnes compared to 7,773,184 tonnes i.e. up by 17.80%.

Surged in Import of Sunflower Oil:

During Nov., 2011 to Sept., 2012 import of sunflower oil is reported at 1,049,181 tonnes compared to 739,173 tonnes during the same period of last year. Sunflower oil is a major contributor in meeting demand for soft oil, as sunflower oil prices have been attractive compared to soybean oil. Currently the premium on sunflower oil over soybean oil is just US$ 11 per ton and also sunflower oil is preferred oil by housewives in India. Also, India has started importing canola oil and bought about 90,000 tonnes during last 8 months compared to 3,601 during same period of last year, mainly due to lesser local crushing of rapeseed due to disparity.

Stock Position at Port and in Pipelines:-

Current stock of edible oils as on 1st October, 2012 at various ports is estimated at 880,000 tonnes (CPO 510,000 tonnes, RBD Palmolein 110,000 tonnes, Degummed Soybean Oil 130,000 tonnes, Crude Sunflower Oil 115,000 tonnes and Canola Rape Oil 15,000 tonnes) and about 570,000 tonnes in pipelines. Total stock, both at port and in pipelines is decreased by 100,000 to 1,450,000 tonnes due to reduced local production and festival demand compared to last month.

Import of Non-edible oils during September 2012 is reported at 17,495 tonnes compared to 33,472 tonnes during the same period last year. The overall import of non-edible oil during Nov., 2011 to Sept., 2012 is reported at 193,104 tonnes compared to 279,524 tonnes during the same period of last year i.e. down by 31%.