14/07/2012 (Economic Times) -  Import of vegetable oils (edible and non-edible) during the first eight months of current oil year (Nov,11-Oct,12) has shot up by 24.65%, according to the Solvent Extractors' Association of India. The overall import of vegetable oils during November 2011 to June 2012 is reported at 6,395,199 tons as compared to 5,130,224 tons in the corresponding period of the previous year.

During November 2011 to June 2012, import of refined oil up (RBD Palmolein) has nearly doubled and stood at 1,209,058 tons compared to 638,715 tons during the same period of last year. The share of refined has increased to 19%, while crude oil has decreased by 81% to 5,047,380 tons compared to 4,308,796 tons during the corresponding period of the previous year. Share of RBD palmolein is likely to increase as current Indonesian inverted duty structure encourage larger export of refined oils (9% export duty) over crude oil (18% export duty), feels the association.

The association also added that the gap between crude palm oil and RBD palmolein has reduced to just $28 which was $73 a year back, discouraging local refining.

During November 2011 to June 2012 palm oil products import has increased to 4,677,609 tons compared to 3,959,300 tons during the same period of last year. The import of soft oils charply increased to 1,578,829 tons compared to 988,211 tons last year as many refiners have switched over to refining of soft oils from crude palm oil.

Sunflower oil is a major contributor in meeting demand for soft oil as sunflower oil prices have been attractive compared to soybean oil. Currently sunflower oil is available at just $9 per ton.