April 27, 2009
India soyoil prices fall on expectations of higher imports
Indian soyoil prices fell during the week ended Friday (April 25) on expectations of higher imports, but palm oil prices moved up tracking firm overseas markets, traders said.
India is likely to import around 600,000-700,000 tonnes of vegetable oil in April and the same amount in May and total imports in 2008-09 are likely to rise to a record 7.5 million tonnes, according to the Solvent Extractors' Association of India.
"Rising edible oil imports are likely to depress local prices," said a trader based in the major producer state of Madhya Pradesh.
The country will need to import about 60 percent more vegetable oil in the next five years if domestic production fails to improve, said Ashok Sethia, president of the association, Thursday.
India imported 6.3 million tonnes of vegetable oil in the oil marketing year ended Oct. 31. The country's total vegetable oil imports in the first five months of 2008-09 rose 59 percent on year to 3.59 million tonnes, SEA data showed.
Traders also are importing more fearing imposition of an import duty on crude edible oil after the general elections, said another trader.
The federal government had scrapped a 20 percent import duty on soyoil in March.
