Edible oil imports up 30% in Nov, duty lowers soyoil lure

Written by Commodities Bureau | Mumbai | Updated: Dec 16 2008, 06:14am hrs
The total import of vegetable oil has increased by 30% to 5.55 lakh tonne for November 2008, as comapared 4.28 lakh tonne in November 2007 which includes 5.19 lakh tonne of edible oils and 36,310 tonne of non-edible oils. However, there was no import of soyabean oil, according to latest import data released by the Solvent Extractors Association (SEA) on Monday.

The difference between landed cost of crude palm oil (CPO) and that of crude soyabean oil (SBO) increased due to a fresh imposition of import duty on crude soya oil from November 18, said BV Mehta, executive director, Solvent Extractors Association (SEA), Mumbai.

The total import of palm products including that of CPO and RBD palmolein has been reported at 3.63 lakh tonne and 1.37 lakh tonne, as compared with 3.14 lakh tonne and 30,014 tonne respectively in November 2007.

Import of refined edible oils increased to 1.37 lakh tonne and that of crude oil, to 3.81 lakh tonne.

Import of non-edible oils, which are mainly used by soap manufacturers and others, declined by 55% at 36,310 tonne as compared with 80,592 tonnes in the previous period. During the last three months, prices of CPO, RBD palmolein, soyabean oil and sunflower oil have gone down by $200 - $370 per tonne on account of weak trends in international markets, Mehta said.

A fresh duty of 20% on crude soybean oil made it even less attractive and there was no import of soybean oil in November, he said. The total import of soybean oil was 7.59 lakh tonne, as compared with 40.44 lakh tonne of CPO. The import of soyabean oil may further fall this season as indicated from the first month of oil season 2008-09, he said.