Palm oil imports may surge 40%

MUMBAI: An increased appetite for palm oil in the country will drive up its imports by around 40% at 46 lakh tonnes in 2006-07 as against 33 lakh tonnes in 2005-06, an industry expert said.

“I believe 2007 will be the year when India will once again emerge as a major player in palm oil price-making,” Godrej International director, Dorab E Mistry, said.

The estimated palm oil consumption by the country in 2006-07 would be up by 43% at 45 lakh tonnes as against 31.5 lakh tonnes in 2005-06, he said, adding “this great reliance on palm will have a significant bearing on the price outlook for palm products.”

India’s vegetable oil production is estimated to be down by 4.4% at 68 lakh tonnes in 2006-07 as against 71 lakh tonnes the previous year, he said. In his paper presented at the price outlook conference 2007-08 held at Kuala Lumpur.

Mr Mistry said that from May onward, India’s imports of palm are likely to accelerate and exceed the previous quantities. He indicated that there was a possibility of the Indian government further reducing import duty on palm to 50% in May with its offer for a free trade agreement (FTA) with Asean.

He estimated that the total vegetable oil imports of India would be up by 17% at 63 lakh tonnes in 2006-07 as against 54 lakh tonnes in year 2005-06. India’s vegetable oil production is estimated to be down by 4.4% at 68 lakh tonnes in 2006-07 as against 71 lakh tonnes the previous year, he said.

“Though oilseed production in India, both kharif and rabi in 2006-07 is down by 2 million tonnes, oil production is lower by three lakh tonnes due to a very large carryover of rapeseed from previous year, he added.