09/06/2009 (Food Biz Daily) - India’s vegetable oils for first six months of the oil year 2008-09 shows an unusual increase by 64% to 4,292,088 tons from 2,611,829 tons for the same period of last year. Import during April, 2009 became double and is reported at 699,396 tons compared to 347,332 tons for April, 2008.

 According to Solvent Extractors Association of India, palm products have appreciated by about US$ 250 since Novembe,2008, still with Nil duty is attractive and import is likely to continue over half a million tons per month apart from 100-125,000 tons of soft oils and expecting about 6.5 to 7,00,000 tons of shipment per month during next six months.

 Looking to the current trend, we would like to revise our earlier estimate upward to 8 million tons of import (from 7.5 million tons) consisting of 7.5 million tons of edible oil + 5,00,000 tons of non-edible oils for the period November,2008 to October, 2009. This is mainly due to lower than expected domestic production of oilseeds and considerably increase in domestic consumption due to reduced domestic prices and also decline in world market prices coupled with the reduction/withdrawal of import duty on edible oils by the Indian Government in November 2008 and March 2009. Current stocks of edible oils at ports and domestic market are lower than expected and just equal to one month requirement, sources added.

Import of Refined Oil during November 2008 to April 2009 is reported at 614,675 tons (15%) compared to 92,967 (4%) and Crude Oil is reported at 3,479,296 tons (85%) compared to 2,151,043 tons (96%) for the same period of last year.

Import of Sunflower oil is gaining the market share and reported at 353,067 tons in first six months compared to nil import during the same period of last year.

Palm products are dominating and their import share is over 82% of the total import. Import of Palm Oil in first six months is reported at 3,369,422 tons (82%) compared to 2,014,894 tons (90%) and Soft Oil is reported at 724,549 tons (18%) compared to 229,116 tons (10%) during the same period of last year.