Winter is a period that normally sees lower import of palm group of oils. This is because they become solid, forcing consumers to look the other way.
However, this winter imports of palm group of oils increased, thanks to a discount of $300-350 a tonne they enjoyed over soft oils such as degummed soyabean oil and crude sunflower oil.
According to the Solvent Extractors Association of India, the share of palm group of oils in imports was 90 per cent during November-December during the current oil year ending October against 87 per cent in the same period a year ago.
widening discount
The discount that crude palm oil and RBD (refined, bleached and deodorised) palmolein enjoyed boosted vegetable oil imports into the country during December. Imports were up 35 per cent to 9.01 lakh tonnes (lt) compared with 6.69 lt in December 2011.
For the oil year, imports during November-December have been pegged at 16.01 lt against 15.25 lt a year ago.
Poor crushing by the domestic solvent extractors following slack demand for soyameal and lower prices aided the rise in imports.
cheaper palm oils
Crude palm oil at $739 a tonne in December was lower than $771 in November and $1,000 in December 2011. RBD palmolien was imported at an average price of $840 a tonne ($770 in November and $1,100 in December 2011). Crude soyabean oil imports were made at $1,193 a tonne and crude sunflower oil at $1,246 a tonne.
Prices of soybean oil were almost the same in December 2011 with soyabean oil quoting at $1,185 and sunflower oil was lower at $1,171.
The higher imports have resulted in stocks that are in ports and in the way to 1.46 lt (0.76 in pipeline and 0.70 lt at ports) against 1.45 lt in December (0.8 in pipelines and 0.65 lt at ports).
subramani.mancombu@thehindu.co.in