Excessive import of crude palm oil (CPO) in the previous two months and higher prices of soft oils such as sunflower seem to have impacted the import of edible oils.
The import of edible oils came down by 26.89 per cent in February 2021 and 3.85 per cent in the first five months of the oil year 2020-21.
According to the data compiled by Solvent Extractors’ Association (SEA) of India, the country imported 796,568 tonnes of edible oil in February 2021 against 1,089,661 tonnes in the corresponding period of 2020; and 4,454,588 tonnes during November-February 2020-21 against 4,282,693 tonnes in November-February of 2019-20.
BV Mehta, Executive Director of SEA of India said that CIF value for sunflower oil is at $1,765 a tonne now. Terming it as the highest in the last 13 years, he said the import of sunflower oil has reduced drastically now.
The average CIF value of imported crude sunflower oil was $1,400/tonne in February and $1,319 in January. The import of sunflower oil stood at 7,70,364 tonnes during November-February 2020-21 (9,89,565 tonnes in November-February of 2019-20).
He said there was excessive import of palm oil during December-January period. As a result, there is stock of this commodity in the market. The country imported 7,70,392 tonnes of palm oil in December and 7,80,741 tonnes in January. However, it imported only 3,94,495 tonnes of palm oil in February.
“Since the prices have gone up significantly, people are operating at the lowest inventory. Earlier they used to buy and keep it for 20-30 days stock,” Mehta said, adding that the high price of edible oil is sinking the consumption.
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