The import of edible oil in India continue to be robust in August ahead of festival season , past pre-covid level in second month in a row in August 2020 at about 13.70 lac tonnes and almost double from April/May’20 as the ease in lockdown throughout the nation.
Import of edible oil in July 2020 was highest in a year so far at 15.65 lacs tonnes but down about 13% in August compared to immediate previous month. As per projections of Indian Vegetable oil producers association , July month required to be a big month for imports due to the fact that pipeline stocks reached an unmanageable low levels by may 20 end.
Currently Indian port stock reached up to 8 lacs tones from 5.6 lacs tonnes in May/June during lockdown.
The country's softoil import is increased by 11% in this period to 5.11 MMT vs 4.57 MMT in same period last oil year as some of the Horeca and out of home consumption shifted to house hold consumption said , Sudhakar Desai, president of IVPA . Overall import of all edible oil of India dropped by 11% so far to 10.90 mmt vs 12.32 mmt in the first 10 month of Oil Year end it would take some more time for the demand to restore to pre- Covid levels .
All domestic prices after big price rally are trading at this years high levels currently .
( ex factory prices moved as follows) - rupees per 10 kg
Olein : ₹700 to ₹840
Soya Ref : ₹800 to ₹880
Sun Ref. ₹900 to ₹1150
Palm oil sales picked up pace from July onwards & we expect Sep, Oct, Nov’20 imports at usual volume of 6.50-7 lac mts per month. Due to 14 percent increase in Khariff crops, we might have more of consumption shift to the domestic oils during oct to March period .
India's overall edible oil imports dropped by 1.8 million tons in oct-sep oil year 19-20 compared to same period in 18-19 with most of demand destructionnhappenning dueing the lock down period .
With this price spread sun demand will slow down & palm & soya demand will increase in coming months. Mr Desai said that India imposed restrictions on imports of refined palm oil and palmolein in January and now strengthen the rule of origin to curb the duty free imports from ASEAN countries and it It was a very timely intervention to help the industry at times of volatile capacity utilization and drop in sales . Recently new customs conditions imposed might also restricted the zero duty cheap soya refined oil import of 15000 tons per month coming from nepal might also be restrained and will create a level playing for the indian refineries MR Desai said. Global prices have had a huge rally in the last 3 months and might consolidate at the current levels.
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