MARKET DEVELOPMENT
Soyabean Oil Imports Rising
Soyabean Oil Imports Rising
04/02/2015 (mydigitalfc.com) - Soyabean oil is one of the most important edible oils used in India. In its crude form, soyabean oil is the second most traded oil in international market after palm oil. The commodity is traded in degummed (crude) and refined forms in the spot as well as futures markets.
In India, soyabean arrivals begin in early October and crushing for oil and meal starts, which peaks during the subsequent two-three months.
India is also the world’s leading importer and consumer of edible oils. Of the total 5-5.5 million tonnes of vegetable oils imported by India annually, 1.3-1.5 million tonnes is soybean oil, imported mostly from Argentina, Brazil and the US. Nearly 3 million tonnes of palm oil is purchased from Malaysia and Indonesia.
Soyabean oil import by India in 2014-15 is expected to touch the decade high of over 2 million tonnes, thanks to higher consumption and lower domestic production and subsequent oil seeds crushing. Soyabean oil imports for November 2014 increased over seven times to 121,097 tonnes against 14,980 tonnes in the same month last year, according to the Solvent Extractors Association data. Oil crops marketing begin in November and ends in October.
According to Raju Choksi, vice-president, (agri commodities), Anil Nutrients, soyabean oil consumption in India has grown by compounded annual growth rate of around 7 per cent in last five years, but the production has remained stagnant in the 1.4-1.7 million tonnes range. “We believe soyabean oil imports will touch 2 million tonnes this year,” Choksi said.
Due to higher global supply, the price of soyabean oil has fallen significantly in the international market, which has impacted domestic prices also, he said. “Falling domestic prices has slowed crushing pace as farmers tend to hold on to their produce,” Choksi said.
Other commodity analysts also said that India is the net importer of soyabean oil is not without a reason or logic. Of the total edible oil purchase by India, imports of soyabean oil increased from 12 per cent in 2007-08 to 15 per cent in 2009-10. It has increased further. While soyabean oil production in India declined from 1.45 million tonnes in 2007-08 to 1.1 million tonnes in 2009-10, consumption of oil increased from 2.3 million tonnes in 2007-08 to 2.5 million tonnes in 2009-10. The production-consumption gap is met by importing soyabean oil.
When it comes to domestic production, as per the Central Organisation for Oil Industry & Trade, the production of soyabean crop is estimated at 9.17 million tonnes against 9.50 million tonnes last year. Domestic soyabean oil production is expected to be 1.30 million tonnes against 1.40 million tonnes last year. According to the latest US department of agriculture report, consumption of soyabean oil in India is likely to be around 3.45 million tonnes against 3.30 million tonnes last year.
In India, soyabean arrivals begin in early October and crushing for oil and meal starts, which peaks during the subsequent two-three months.
India is also the world’s leading importer and consumer of edible oils. Of the total 5-5.5 million tonnes of vegetable oils imported by India annually, 1.3-1.5 million tonnes is soybean oil, imported mostly from Argentina, Brazil and the US. Nearly 3 million tonnes of palm oil is purchased from Malaysia and Indonesia.
Soyabean oil import by India in 2014-15 is expected to touch the decade high of over 2 million tonnes, thanks to higher consumption and lower domestic production and subsequent oil seeds crushing. Soyabean oil imports for November 2014 increased over seven times to 121,097 tonnes against 14,980 tonnes in the same month last year, according to the Solvent Extractors Association data. Oil crops marketing begin in November and ends in October.
According to Raju Choksi, vice-president, (agri commodities), Anil Nutrients, soyabean oil consumption in India has grown by compounded annual growth rate of around 7 per cent in last five years, but the production has remained stagnant in the 1.4-1.7 million tonnes range. “We believe soyabean oil imports will touch 2 million tonnes this year,” Choksi said.
Due to higher global supply, the price of soyabean oil has fallen significantly in the international market, which has impacted domestic prices also, he said. “Falling domestic prices has slowed crushing pace as farmers tend to hold on to their produce,” Choksi said.
Other commodity analysts also said that India is the net importer of soyabean oil is not without a reason or logic. Of the total edible oil purchase by India, imports of soyabean oil increased from 12 per cent in 2007-08 to 15 per cent in 2009-10. It has increased further. While soyabean oil production in India declined from 1.45 million tonnes in 2007-08 to 1.1 million tonnes in 2009-10, consumption of oil increased from 2.3 million tonnes in 2007-08 to 2.5 million tonnes in 2009-10. The production-consumption gap is met by importing soyabean oil.
When it comes to domestic production, as per the Central Organisation for Oil Industry & Trade, the production of soyabean crop is estimated at 9.17 million tonnes against 9.50 million tonnes last year. Domestic soyabean oil production is expected to be 1.30 million tonnes against 1.40 million tonnes last year. According to the latest US department of agriculture report, consumption of soyabean oil in India is likely to be around 3.45 million tonnes against 3.30 million tonnes last year.