Heavy physical stocks of imported edible oil lying at major ports, weak overseas market and slow but steady progress of oilseeds sowing may reduce the pace of imports into the country over the next four months. Total import of edible oils in June was registered at 7.80 lakh tonne, up by 31%, over previous year which is highest during the current season. During the first eight month of the current season, total imports touched 58.23 lakh tonne, up by 80%, over previous season’s 35.67 lakh tonne.

“International vegetable oil prices are once again sliding down to November 2008 level heading for bearish scenario. Favourable weather condition in the US Midwest as well as weakening trend of vegetable oil prices on the world market and plummeting crude mineral oil prices are contributing to price setback in international and domestic market,” BV Mehta, executive director of the Solvent Extractors’ Association of India said.

“Total edible oil imports may slowdown to 5-5.5 lakh tonne per month which at present is nearly 7-7.5 lakh tonne,” he said.

Import of refined oils during November 2008 to June 2009 was reported at 8.19 lakh tonne (15%) over 2.05 lakh tonne (7%) and crude edible oil was reported at 47.14 lakh tonne over 28.91 lakh tonne for the same period of last year.

He also said that the large scale unabated import in last few months and no action taken in Budget 2009-10 to impose import duty coupled with low prices will encourage larger import in coming months.

“The erratic monsoon and likely lower kharif oilseeds crop will further push the import in September-October months and overall import is likely to be about 80 lakh tonne (75 lakh tonne edible oil, 5 lakh tonne non-edible oil) for the current oil year ending October 2009 over 63 lakh tonne import during last year,” he added.

Import of palm oil in first eight months (November 2008-June 2009) was reported at 43.87 lakh tonne over 27.32 lakh tonne.

Soft oils import including soya oil was reported at 11.45 lakh tonne including 4.38 lakh tonne

sunflower oil and 6.60 lakh tonne crude soybean oil over 3.64 lakh tonne during the same period of last year.

Import of non-edible oils in first eight months (November’08-June’09) was reported at 2.91 lakh tonne over 4.70 lakh tonne during the same period of last year, down by 38%, thanks to higher import & domestic refining of CPO, leading to better availability of PFAD & CPS.