MARKET DEVELOPMENT
UPDATE 1-India 2012/13 Cooking Oil Imports Hit Record High
UPDATE 1-India 2012/13 Cooking Oil Imports Hit Record High
16/11/2013 (Reuters) - Indian cooking oil imports hit a record high in the marketing year that ended in October and arrivals look set to rise further in 2013/14 as the world's top palm oil buyer feeds growing demand at home.
Higher overseas purchases by India will help underpin global prices of palm oil that have gained about 7 percent this year, still nursing most of the sharp 36 percent losses seen over the past two years.
India's cooking oil imports rose 4 percent to 10.38 million tonnes in 2012/13, the Solvent Extractors Association said in a statement on Friday, led by an 8 percent jump in total palm oil purchases to 8.3 million tonnes.
"India will need at least a half million tonnes this year (2013/14) to meet the increase in demand for edible oils," B.V. Mehta, executive director of SEA, told Reuters.
India's 1.2 billion population is swelling about 1.3 percent a year and a growing economy is boosting incomes, allowing more people to buy costlier and better quality oils for cooking.
While the Indian rupee hit a record low against the dollar in August, curbing demand, it has risen since then and if gains continue, imports look set to stay strong.
Palm oil, mostly from Malaysia and Indonesia, comprised about 80 percent of India's total cooking oil imports. India relies on imports for about 60 percent of its annual vegetable oil demand of 17-18 million tonnes.
Refined palm oil imports climbed 40.5 percent to 2.2 million tonnes in 2012/13 as Indonesia, the world's biggest palm oil exporter, structured taxes to favour exports of refined product over crude to support its domestic refining industry.
India also bought 1.1 million tonnes of soyoil in 2012/13 from South America, almost the same as the previous year. The South Asian country favours soyoil over palm oil for special occasions such as weddings where fried delicacies such as kebabs and biryanis are served to guests.
MONTHLY IMPORTS
Palm oil imports rose for a second straight month in October, gaining 21.4 percent from September levels to 782,467 tonnes, as strong festival demand and low domestic supply of competing soyoil boosted purchases.
Traders said crude palm oil arrivals got a shot in the arm from last-minute purchases to substitute for missing soyoil supplies as rains disrupted domestic soybean harvests.
The price for palm oil on India's west coast rose to around $835 per tonne last month from $809 in August, but the drop in rupee terms encouraged imports, the data showed.
Imports of the refined variant however were hit as buyers held back due to uncertainty over whether a duty rise would be introduced, resulting in a drop of around 8 percent to 154,342 tonnes in October from the previous month.
Indian refiners have been lobbying the government for a hike in the duty on refined palm oil imports to protect their interests against cheap imports.
Soyoil imports fell 31 percent month-on-month to 97,023 tonnes in October as a local supply gap prompted buyers to bring in crude palm oil, which can be imported from Southeast Asia more quickly than soyoil from Latin America.
India's soybean harvest season was disrupted by heavy rains over the main growing areas of central India in the first half of last month, and as a result less supplies were available for crushing to get soyoil.
Higher overseas purchases by India will help underpin global prices of palm oil that have gained about 7 percent this year, still nursing most of the sharp 36 percent losses seen over the past two years.
India's cooking oil imports rose 4 percent to 10.38 million tonnes in 2012/13, the Solvent Extractors Association said in a statement on Friday, led by an 8 percent jump in total palm oil purchases to 8.3 million tonnes.
"India will need at least a half million tonnes this year (2013/14) to meet the increase in demand for edible oils," B.V. Mehta, executive director of SEA, told Reuters.
India's 1.2 billion population is swelling about 1.3 percent a year and a growing economy is boosting incomes, allowing more people to buy costlier and better quality oils for cooking.
While the Indian rupee hit a record low against the dollar in August, curbing demand, it has risen since then and if gains continue, imports look set to stay strong.
Palm oil, mostly from Malaysia and Indonesia, comprised about 80 percent of India's total cooking oil imports. India relies on imports for about 60 percent of its annual vegetable oil demand of 17-18 million tonnes.
Refined palm oil imports climbed 40.5 percent to 2.2 million tonnes in 2012/13 as Indonesia, the world's biggest palm oil exporter, structured taxes to favour exports of refined product over crude to support its domestic refining industry.
India also bought 1.1 million tonnes of soyoil in 2012/13 from South America, almost the same as the previous year. The South Asian country favours soyoil over palm oil for special occasions such as weddings where fried delicacies such as kebabs and biryanis are served to guests.
MONTHLY IMPORTS
Palm oil imports rose for a second straight month in October, gaining 21.4 percent from September levels to 782,467 tonnes, as strong festival demand and low domestic supply of competing soyoil boosted purchases.
Traders said crude palm oil arrivals got a shot in the arm from last-minute purchases to substitute for missing soyoil supplies as rains disrupted domestic soybean harvests.
The price for palm oil on India's west coast rose to around $835 per tonne last month from $809 in August, but the drop in rupee terms encouraged imports, the data showed.
Imports of the refined variant however were hit as buyers held back due to uncertainty over whether a duty rise would be introduced, resulting in a drop of around 8 percent to 154,342 tonnes in October from the previous month.
Indian refiners have been lobbying the government for a hike in the duty on refined palm oil imports to protect their interests against cheap imports.
Soyoil imports fell 31 percent month-on-month to 97,023 tonnes in October as a local supply gap prompted buyers to bring in crude palm oil, which can be imported from Southeast Asia more quickly than soyoil from Latin America.
India's soybean harvest season was disrupted by heavy rains over the main growing areas of central India in the first half of last month, and as a result less supplies were available for crushing to get soyoil.