According to import figures released by the Solvent Extractor's Association of India, import of crude palm oil has increased very fast with 2.57 lakh tonnes having been imported between November'99 and May 2000. In the month of May, a total of 50,016 tonnes of crude palm oil was imported. The domestic industry is upbeat on the change in import equations as an increase in percentage of crude oil import means an increase in utilisation of idle capacities of refineries.

According to industry estimates, utilisation of processing capacities of refineries in the country has touched abysmal levels and is lower than 35 per cent of the total capacity.

Speaking to The Financial Express, The Central Organisation for Oil Industry and Trade's KML Chhabra said that the change was welcome as the entire industry would benefit from it.

"Although the raise in percentage of crude oil import will not result in a big increase in capacity utilisation percentage, but it is still going to result in a significant relief for the processing industry." The SEA data places the import of edible oil during May 2000 at 3.63 lakh tonnes against 2.98 lakh tonnes in April 2000 which translates into an increase of 22 per cent.

Total imports between November 1999 and May 2000 has been estimated at 22.32 lakh tonnes against 18.84 lakh tonnes for the same period of last year recording an increase of 18 per cent. In the first seven months of oil year 1999-2000, import of RBD palmolein recorded a 23 per cent increase by touching 12.97 lakh tonnes against 10.54 lakh tonnes in the same period last year. To highlight the increase in import of raw oil since the government introduced the duty difference between raw & refined oil in January 2000, the SEA has compared the ratio of refined and raw oil imports for the periods before and after the duty change.

In 1998-99, the ratio for refined and raw oil was 70:30 for the entire year. Since January the ratio started tilting in favour of raw oil and the ratio for the first seven months of the current oil year stands at 59:41. The import of non-edible oil for the period November 1999 to May 2000 is estimated at 1.08 lakh tonnes against 86,365 tonnes in the same period of last year recording an increase of over 25 per cent.

Palm Fatty Acid (PFAD) is the main non-edible oil imported by the soap industry. During the first seven months of the current oil year, PFAD import has almost doubled to 50,418 tonnes from 27,910 tonnes. The excessive import of PFAD and other non-edible oil has seriously affected off take of domestic industrial oils like ricebran, neem, mahua etc.