By Sadananda Mohapatra, edited by Sandeep Deshmukh/NewsWire18 

India will buy around 8.2 mln tn of edible oil from overseas in 2009-10 (Nov-Oct), the same quantity imported in the previous year, industry and trade body officials said in the All India Convention on Oilseeds, Oils Trade & Industry held in the city on Sunday. The total vegetable oil imports in 2008-09 were over 8.6 mln tn against 6.3 mln tn a year ago. "The imports were higher during 2008-09. But I don't see it rising this year. Import demand from India is plateauing," Atul Chaturvedi, chief executive officer, Adani Wilmar Ltd said. India imports around half of its 14-mln tn annual edible oil requirement. It buys huge quantity of palm oil from Indonesia and Malaysia and small amount of soyoil from Brazil and Argentina. The domestic annual demand for imported edible oil normally grows by 20-25%. But in 2008-09, the 50% on year rise in imports were mainly due to cheap palm oil and zero duty on imported crude edible oil, traders said. India currently imposes no duty on crude edible oil imports, but imposes 7.5% duty on refined oil. The Central Organisation for Oil Industry and Trade has demanded that the government should impose 30% duty on crude edible oils and 40% on refined oils as low duty import was threatening the domestic industry, the trade body said in the convention. ""We are not against imports, but we are concerned about excessive imports," Davish Jain, president of COOIT had told NewsWire18 last week. India's cooking oil availability in 2008-09 was 16.2 mln tn as compared with 13.8 mln tn in 2007-08. 

Domestic Demand

Even if the edible oil imports were to remain stable at levels of 2008-09, it would suggest a rise in domestic demand for cooking, traders said. "In 2009-10, India's edible oil requirement will be 17 mln tn," Ramesh Garg, chairman of K S Oils said in the convention on Sunday. Bullish stock markets and cheap edible oil rates created more domestic demand for edible oil, trade body officials said. "Consumption of edible gone up in 2008-09 due to cheap rates and because of rise in people's income from better stock markets and property market," Govindbhai Patel, convener of COOIT said. The benchmark stock market index Sensex gained around 103% to end at 17,222 in Samvat 2065. The Samvat started on Oct 28,2008 and ended on Oct 17,2009. 

 Rabi Oilseed

Industry leaders expect better rabi output will compensate for the fall in kharif oilseed production. As per industry's estimate the 2009 kharif oilseed output would be around 13.65 mln tn, down 9% on year due to bad monsoon. "The edible oil imports will remain same as last year. The shortfall in khariff oilseed output will be compensated by better rabi output," Patel said. Industry leaders, traders and government are hopeful of better mustard output this year due to late rains in October, which made the soil sowing-ready earlier than November. Mustard is the major rabi oilseed crop in the country. It is sown during Nov-Dec and is harvested during Feb-Mar. "It is too early to estimate mustard output now. But I am sure the acreage will rise to 7 mln ha this year, up from last year's around 6.6 mln ha," said Patel, who is also partner of Rajkot-based Deepak Enterprise, said. Total rabi oilseed sowing in the country by Oct 30 was 3 mln ha, up 12.2% on year. Mustard acreage stood at 2.47 mln ha, up by 37%, a government release said recently.

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