Mumbai: Indian Palm oil imports are likely to remain at 83 lakh tonnes in the oil year 2013-14 starting from November, as local refiners prefer cheaper alternatives like soy and sunflower oil, Godrej International Director Dorab Mistry said today.
“Indian refiners face competition from imported refined palm products. They are the gate-keepers to the Indian
market.
They determine which oil is to be imported and processed.
“India, the world's biggest importer of palm oil, could see demand stagnating as local buyers turn to soy oil
and sunflower oil alternatives to refiners,” Mistry, an expert on the subject, said at the the Globoil India conference here.
The palm oil imports is likely to be at 83 lakh tones during the Indian oil crop year November to October 2013-14, compared to 83.5 lakh tonnes in the previous year, he said.
Meanwhile, the country is likely to import 12 lakh tones soyabean 2013-14, compared to 9.5 lakh tonnes in 2012-13.
Similarly, India is likely to import 12 lakh tonnes in the coming year sunflower compared to 10 lakh tonnes this year.
“Some of my refiner friends tell me they make money on refining sunflower oil in 12 out of 12 months. They make money in refining soyabean oil 10 out of 12 months. They make money refining palm oil in 3 out of 12 months,” he added.
The total imports, he said, is likely to be at 110 lakh tonne during 2013-14 crop year compared to 106 lakh tonne in the previous year.
For 2013-14, Indian production of vegetable oils is likely to be higher by at least 500,000 tonnes.
“These estimates are very preliminary because the rabi crop is yet to be planted. Due to current economic slowdown in India, consumption growth is decelerating for the July to November period. In 2014 consumption growth should pick in the run up to elections and in the inevitable post-election euphoria,” he pointed out.
Even as there is an added uncertainty of the currency the sentiment remain optimistic that post- election euphoria will be all pervasive and also help to lift the rupee.
“Therefore, I am estimating growth in consumption at about 8,00,000 tonnes,” Mistry added.
