April 1, 2013

India, the world's second largest cooking oil consumer, has imported 9.69 lakh tonnes of vegetable oils in February, a rise of 10.55% from 8.76 lakh tonnes in the same period during 2012, according to Mumbai-based industry body, Solvent Extractors Association (SEA).

Excessive imports in the last three months has led to a rise in stocks both at ports and in pipelines to 19.6 lakh tonnes (LT), nearly 40 days consumption requirement of the country against the usual stock of 30 days, it noted.

Of the 9.69 lakh tonnes of vegetable imports in February 2013, edible oil comprised of 9.54 lakh tonnes, while non-edible oils stands at 14,999 tonnes, SEA said in a statement.

The country had imported 8.76 lakh tonnes of vegetable oils in February 2012, which included 8.73 lakh tonnes of edible oil and 3,356 tonnes of non-edible oils.

Palm oil constitutes more than 80% of the total vegetable oil shipments. Import of crude palm oil rose sharply to 6.69 lakh tonnes in February from 3.59 lakh tonnes in the year-ago period due to sluggish global prices, according to SEA.

The country imports palm oil mainly from Malaysia and Indonesia, which at present have huge stock of over seven lakh tonnes. "In order to get rid of this excess stock, these palm oil producing countries are aggressively pushing exports into India, thereby depressing local prices," SEA said.

Palm oil imports have risen sharply as crude palm oil prices were ruling down at US$816 per tonne last month, as against US$1,073 per tonne in February 2012. While refined palm oil prices were at US$870 per tonne as against US$1,104 per tonne in the review period.

The overall import of vegetable oils rose by 22% to 37.35 lakh tonnes in the first four months of the current marketing year that started from November, 2012. Out of these, palm oil comprised of 31.03 lakh tonnes.