The country might import around 18 lakh tonne of edible oil imports over the next three months starting August, up 27% from the same period last year, to cater to the coming festival season demand, aided by low prices in overseas markets. Traders expect monthly imports of about 6 lakh tonne as against an average monthly import of 4 lakh tonne to 4.5 lakh tonne in 2007. Indian chiefly imports crude palm oil (CPO) and soya oil degummed.
?We expect a good amount of imports this season, as edible oils prices have come down sharply over the past two months. Crude palm oil prices in Malaysia have declined from $1,250 per tonne in July to trade around $860 per tonne (C/F basis) on Wednesday due to a supply-exceed-demand situation,? a local broker said. Crude palm oil prices on the MCX platform also fell sharply by about 26%, to trade at Rs 376.90 per 10 kg on Thursday over the past one month.
?I think the market has bottomed out and the CPO price in Malaysia may test the 2,500-ringgit level. Considering the low edible oil prices, imports may increase in the next few months. India?s total imports may go up to 60 lakh tonne during the current season (November 07-October 08),? BV Mehta, executive director, Solvent Extractors? Association (SEA), said. The total import of edible oil is likely to be in range of 51 lakh tonne to 52 lakh tonne and non-edible oil would be around 6.5 lakh tonne.