Despite the sharp price rise in crude palm oil (CPO) and crude soya oil (CSO) globally in the past four months, flow of edible oils imports into the country has not been impacted during the current season 2007-08 thanks to demand-supply gap.
Total imports of edible oils mainly crude palm oil, soya oil degummed, RBD palmolein and crude sunflower oil have registered a sharp increase of 40% and recorded at 15.12 lakh tonne over first four months of the current season 2007-08 (November/February) as against 10.83 lakh tonne in the same period last season, according to the Solvent Extractors’ Association of India (SEA).
In fact, the import of edible oils during February 2008 has jumped up and reported at 4.31 lakh tonne compared to 1.51 lakh tonnes in February 2007, up by almost three times.
“In last four months, international prices have substantially increased and practically doubled in last one year. However, this has had no impact on flow of imported oil into India,” B V Mehta Executive Director, SEA said.
In past four months, world prices of CPO and CSO have risen by nearly 20% and 51% due to mismatch in global demand-supply. Crude Palm Oil prices were increased by 20% to trade around $1,173 per tonne in February-end while Crude soya oil also shot up by 51% to trade around $1412 per tonne in February-end.
“I think edible oils imports will continue to flow into the country despite rising prices of major edible oils and I expect about 4.5 lakh tonne of imports during the current month,” Sandip Bajoria, a leading edible oil trader told FE.
Total imports of Refined Oil (RBD Palmolein) have reported at 71,315 tonnes (5%) during the four months period compared to 23,989 tonnes (2%) and crude oils (CPO and CSO) is reported at 14.41 lakh tonne (95%) compared to 10.59 lakh tonnes (98%) for the same period of last year. There was no import of Crude Sunflower Oil during last four months, due to its high price in international market.