The Hindu Business Line : India's edible oil import seen rising

INDIA's import demand for vegetable oils during October 2002 -February 2003 turned out to be lower than expected in view of a steep reduction in domestic oilseed output and processing.

Import demand has grown at a moderate pace so far this season because the steep rise in domestic prices has curbed consumption.

In addition, slowdown in import demand and of domestic production has led to substantial reduction of stocks.

According to Mr Thomas Mielke, editor-in-chief of Oil World, the seasonal decline in domestic production of major oils and fats during April-September 2003 can only be offset by higher imports since stocks have virtually dried out.

"A substantial acceleration of imports will be inevitable in the coming months. We estimate the imports of oils and fats during April-September 2003 at approximately 3.2 million tonnes, a pronounced increase as compared to the first half of the season and about 0.2 million tonnes more than a year ago," Mr Mielke forecast.

Since mid-February, domestic prices have strengthened for groundnut oil, rapeseed oil and cottonseed oil and have remained firm for soyabean oil and palm oil.

Only sunoil prices declined notably due to accelerating imports and the upcoming bumper domestic sunseed crop, he pointed out.

According to Oil World, India's vegetable oil production in 2002-03 will be 6.50 million tonnes (mt) and consumption 12.16 mt.

Imports, projected at 5.61 mt, will comprise broadly 3.50 mt of palm oil, 1.85 mt of soyaoil and 0.11 mt of sunoil. Last year's import was 4.89 mt.

The per capita consumption will shrink to 11.5 kg in the current year from 11.9 kg last year.

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