Date:15/11/2006 URL: http://www.thehindubusinessline.com/2006/11/15/stories/2006111504061100.htm

Back Edible oil imports down 12%

Our Bureau

Mumbai , Nov. 14

Edible oil imports into the country during the just-concluded oil year (November 2005-October 2006) declined by 12 per cent or 6.2 lakh tonnes (lt) to 44.17 lt, according to data complied by Solvent Extractors' Association of India (SEA).

A combination of higher domestic production during the year and large rapeseed/mustard inventory with the price support agency Nafed (National Agricultural Cooperative Marketing Federation) resulted in lower arrivals, SEA said. However, because of high prices and overall inflation some demand compression occurred.

For a large part of the year, the market faced uncertainty relating to tariffs and duties as also weather concerns.

Price disparity, too, contributed to traders turning cautious in importing. In five years since 2001-02, annual vegetable oil imports have ranged between 44 lt and 51 lt.

Sluggish growth

Domestic oilseeds output has displayed rather sluggish growth. In oil year 2005-06, palm group of oils lost market share by 2 percentage points to 58 per cent (to 25.7 lt) while soft oils (soya and sun) gained to move up to 42 per cent (18.5 lt). Vanaspati imports are estimated at 3 lt during 2005-06 compared with 2 lt the previous year.