Financial Daily from THE HINDU group of publications
Wednesday, Mar 09, 2005

Port Info

Group Sites

Agri-Biz & Commodities - Oilseeds & Edible Oil
Industry & Economy - Exports & Imports

Vegoil imports up in Feb

G. Chandrashekhar

Tight supplies and hopes of a cut in import duty in the Budget sparked heavy purchases.

Mumbai , March 8

VEGETABLE oil imports during February were an estimated 4.35 lakh tonnes, considerably higher than the previous three months' average of 3.15 lt, according to a data compiled by the industry portal and made available to Business Line.

Imports comprised in the main 1.92 lt of degummed soyabean oil; 1.88 lt of crude palm oil; and 38,250 tonnes of crude palmolein. Small parcels of refined palmolein, crude palm kernel oil and crude sunflower oil were also received and accounted for the balance.

With this, the total imports during the first four months of the new oil year (2004-05) were 13.8 lt versus 11.5 lt in the same period the previous year. Traders said tight supplies in the domestic market and widespread anticipation of a reduction in import duty in the Budget sparked heavy Indian purchases during January.

Some players in the trade forecast that India's vegetable oil imports during oil year November 2004-October 2005 would be little changed from 44 lt imported during the previous year.

However, the trend in imports so far, domestic oilseed production prospects and the fact that demand for edible oil has the potential to rise sharply this year following strong income growth suggest annual arrivals may be at least 10 per cent higher and reach close to 50 lt.

The ongoing harvest of rapeseed/mustard and market arrivals should keep domestic prices on the leash for some time. Many forecasters are now progressively reducing their crop estimate for rapeseed/mustard — from as much as 75 lt over a month ago, the estimates now are down to 66 lt-67 lt.

The domestic market will have to reckon with developments in the international market. At the recently concluded Palm Oil Price outlook conference, there was near unanimous opinion that notwithstanding current fundamentals — balanced demand-supply position — palm oil would stay firm with a distinct upward bias.

Obviously, the tariff policies of the Indian Government have to take into account emerging global situation.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Call to exploit export potential of tuna fish

Chilli glut in Ramanathapuram
Mixed trend in spot rubber
Snag hits Coonoor tea e-auctions
Green signal
Vegoil imports up in Feb
Govt may hike crude soya oil tariff value
Centre assures to look into MSP for chillies
Markets closed

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line