MARKET DEVELOPMENT
Vegoil Imports up 3% on Robust Demand, Shrinking Supply
Vegoil Imports up 3% on Robust Demand, Shrinking Supply
15/09/2015 (Hindu Business Line) - Vegetable oil imports last month were up three per cent to 13.75 lakh tonnes (13.33 lt) despite rupee depreciating four per cent against dollar.
The robust demand ahead of festival season led to import of 13.64 lt of edible oils and 9,477 tonnes of non-edible oils in August, said the Solvent Extractors’ Association in a statement.
Soyabean oil imports hit a new record of 4.06 lt, toppling the highest level of 3.49 lt recorded in July and 3.10 lt in August, 2001.
The high prices of oilseeds in the domestic market have made production unviable for oil mills. The industry faces an uncertain future particularly when the farmers have started harvesting soyabean and supply is slowly increasing in local mandis in Madhya Pradesh. Globally, both oilseed and edible oil prices are falling consistently in last few months due to a glut, especially in palm products.
The overall import of vegetable oils between November 2014 and August was up 23 per cent at 117 lt compared to 95 lt recorded in the same period last year.
As on September 1, the inventory at various ports is estimated at 925,000 tonnes which includes 435,000 tonnes of crude palmolein, 95,000 tonnes of refined palm oil, 240,000 tonnes of degummed soyabean oil, 110,000 tonnes of crude sunflower oil and 45,000 tonnes of rapeseed oil. This apart, about 14 lt of edible oil is in the pipeline. The total stock including the ones lying at ports and pipelines decreased to 23 lt (equal to 44 days requirement) from 24 lt. India’s monthly requirement is about 16 lt.
The robust demand ahead of festival season led to import of 13.64 lt of edible oils and 9,477 tonnes of non-edible oils in August, said the Solvent Extractors’ Association in a statement.
Soyabean oil imports hit a new record of 4.06 lt, toppling the highest level of 3.49 lt recorded in July and 3.10 lt in August, 2001.
The high prices of oilseeds in the domestic market have made production unviable for oil mills. The industry faces an uncertain future particularly when the farmers have started harvesting soyabean and supply is slowly increasing in local mandis in Madhya Pradesh. Globally, both oilseed and edible oil prices are falling consistently in last few months due to a glut, especially in palm products.
The overall import of vegetable oils between November 2014 and August was up 23 per cent at 117 lt compared to 95 lt recorded in the same period last year.
As on September 1, the inventory at various ports is estimated at 925,000 tonnes which includes 435,000 tonnes of crude palmolein, 95,000 tonnes of refined palm oil, 240,000 tonnes of degummed soyabean oil, 110,000 tonnes of crude sunflower oil and 45,000 tonnes of rapeseed oil. This apart, about 14 lt of edible oil is in the pipeline. The total stock including the ones lying at ports and pipelines decreased to 23 lt (equal to 44 days requirement) from 24 lt. India’s monthly requirement is about 16 lt.