Vegetable Oils Imports Remain Stable At About Rs 55,000 Cr In 2012-13

NEW DELHI: India's vegetable oils imports remained stable at about Rs 55,000 crore in 2012-13 marketing year ended last month despite five per cent growth in volume as global prices softened, according to industry body SEA.



Vegetable oil import rose by 4.77 per cent at record 10.68 million tonnes during 2012-13 marketing year (November- October) against 10.19 million tonnes (MT) in previous year due to stagnant domestic production and rising consumption.



"We imported veregtable oils worth Rs 55,000 crore in 2012-13 oil year, which is similar to the previous year's level. Global rates were lower by 15 per cent, compensating increase in volume," Solvent Extractors' Association Executive Director B V Mehta told PTI.



India meets more than 50 per cent of their domestic demand through imports. Palm oil is being imported from Malaysia and Indonesia, while soyabean oil from Argentina and Brazil.



Edible oil imports rose to 10.39 MT in 2012-13 from 9.98 MT in the previous year. Imports of non-edible oils increased to 2,93,534 tonnes, from 2,11,098 tonnes, during the period under review.



Besides rising demand and stagnant domestic output, SEA attributed the rise in imports of vegetable oils to inverted duty structure by Indonesia and Malaysia that led to sharp jump in imports of refined palm oil.



Domestic production of vegetable oils was stagnant at 8.09 MT compared to 8.15 MT in previous year.



"Local consumption of edible oils further increased due to increase in per capita consumption (3 per cent) and population growth (1.76 per cent). Also lower price of vegetable oils boosted the consumption," the association had said in a statement last week.



Import of refined palmolein during April to October'13 jumped to over 1.6 million tonne compared to 7,50,000 tonne during the same period of last year.



"Import of edible oil has sharply increased and nearly doubled in six years due to stagnant oilseed production and rising demand. Refined RBD Palmolein tripled in last six years," SEA said.

Source:- economictimes.indiatimes.com