India is expected to replace China as the world’s largest soyabean oil importer, the US Department of Agriculture said and projected India can become the third largest rice exporter by 2012.
“India is projected to replace China as the world’s largest soyabean oil importer. In the projections, India’s soyabean oil imports climb 28 per cent to 1.2 million tonnes,” it said.
Factors that contribute to the continued growth of the country’s soyaoil imports include burgeoning demand for vegetable oils and a limited capacity to expand domestic oilseed production.
Low yields, associated with excessive monsoon rainfall and low input use, also inhibit growth of oilseed production, the report said.
Noting that in 2008, in response to high world prices, India cut its edible oil import tariffs to zero, the USDA said it is assumed that during the next decade, India’s soyabean oil tariff will gradually return to its previous rate of 45 per cent and tariffs for the other major imported oils — palm and sunflower — will remain below their historical highs of 75 to 85 per cent.
The USDA said by 2021, India is expected to be the third largest rice exporter of the world.
“India’s rice exports are projected to rise to about 4.8 million tonnes by 2021, making it the third-largest exporter,” it said.
India’s rice export levels it said have been volatile, primarily due to fluctuating stock levels and Government policies.