Mumbai: Imports of India edible oil Contracts may fall to their lowest level in six years for the second year in a row due to lack of demand due to the coronavirus outbreak and record prices, a senior industry official said on Wednesday.
Lower buying by the world’s largest importer of vegetable oils could impact prices of Malaysian palm oil, American soy oil and sunflower oil.
India’s consumption, which rose every year before the coronavirus outbreak last year, declined to 21 million tonnes in the marketing year ended October 31, from 22.5 million a year ago, a trade body official said.
BV Mehta, executive director, Solvent Extractors Association of India (SEA), said demand recovery is unlikely in the current 2020/21 marketing year due to record high prices.
of India edible oil import Mehta said the fall may fall to 13.1 million tonnes in 2020/21, the lowest in six years from last year’s figure of 13.2 million.
“India is a very sensitive market and the current high prices are likely to further dampen demand,” he said at an online conference.
Imports meet about two-thirds of India’s demand, he said, adding that palm oil comes mainly from top producers Indonesia and Malaysia, while other oils, such as soy and sunflower, come from Argentina, Brazil, Ukraine and Russia. .
But palm imports could rise 8% to 7.8 million tonnes this marketing year, he said, as India allowed imports of refined palm oil and cut import tax on crude to reduce domestic prices.
Domestic prices have almost doubled in the last one year.
Mehta said overseas purchases of edible oil in India were also limited by higher domestic production, which rose one million tonnes to 9 million in the current marketing year, as production of soybean and groundnut increased.
Lower buying by the world’s largest importer of vegetable oils could impact prices of Malaysian palm oil, American soy oil and sunflower oil.
India’s consumption, which rose every year before the coronavirus outbreak last year, declined to 21 million tonnes in the marketing year ended October 31, from 22.5 million a year ago, a trade body official said.
BV Mehta, executive director, Solvent Extractors Association of India (SEA), said demand recovery is unlikely in the current 2020/21 marketing year due to record high prices.
of India edible oil import Mehta said the fall may fall to 13.1 million tonnes in 2020/21, the lowest in six years from last year’s figure of 13.2 million.
“India is a very sensitive market and the current high prices are likely to further dampen demand,” he said at an online conference.
Imports meet about two-thirds of India’s demand, he said, adding that palm oil comes mainly from top producers Indonesia and Malaysia, while other oils, such as soy and sunflower, come from Argentina, Brazil, Ukraine and Russia. .
But palm imports could rise 8% to 7.8 million tonnes this marketing year, he said, as India allowed imports of refined palm oil and cut import tax on crude to reduce domestic prices.
Domestic prices have almost doubled in the last one year.
Mehta said overseas purchases of edible oil in India were also limited by higher domestic production, which rose one million tonnes to 9 million in the current marketing year, as production of soybean and groundnut increased.
.