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.