Jakarta, KL eye Indian vegetable oil market: Report
Published on: Thursday, September 18, 2014
NEW DELHI: Malaysia and Indonesia, the world's major producers of vegetable oil, are eyeing India's US$10 billion market, Business Standard reported."Both are competing in export policy, making India a dumping ground for palm oil," the Solvent Extractors' Association's (SEA) executive director, B.V. Mehta complained, according to the report.SEA's latest data showed India's import of vegetable oil, both edible and non-edible, jumped 76 per cent in August 2014 to 1,333,480 tonnes compared with 757,830 tonnes in August last year.
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The figures were the highest in any single month since import was allowed under Open General Licence in 1994 by India.The edible oil prices, which are currently at historical low since 2008, were a major contributing factor, SEA had said in the report released on Monday and noted that nil duty on palm products by Malaysia and Indonesia was expected to boost inflows.Hence, India's vegetable oil import was expected to set a record this year at 11.5 million tonnes (Rs 60,000 crore or US$10 billion) amid falling prices, of which 9.5 million tonnes had already arrived, reported the English daily.India consumes about 19.5 million tonnes of vegetable oils annually.
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Malaysia had announced a nil export duty for two months effective Sept 1 with an aim to reduce inventory, at a record of 2.05 million tonnes for August, a 22 per cent rise from 1.69 million tonnes in July.After a five-year low of RM1,914 a tonne last week on Bursa Malaysia, crude palm oil futures contracts are currently hovering at RM2,000 a tonne.
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The report quoted analysts as saying, as a result, Malaysia's palm oil export rose 41 per cent between Sept 1 and 10, compared with the same period in August.Following which, Indonesia, announced an export duty to cut to nil effective Oct 1 from the existing nine per cent.Analysts estimated their crude oil inventory at 2.9-3 million tonnes, said Business Standard.Together, Malaysia, which produces about 19 million tonnes of palm oil andStay up-to-date by following Daily Express’s Telegram channel.
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