Kolkata, Jan 7: Malaysian RBD palmolein oil has shown a remarkable rise in consumption. This is in keeping with the general trend of rising demand for palmoil, especially in the last few years, as they are the cheapest amid all edible oils available internationally. RBD palmolein has good demand, except in winter when prices dip to the lowest levels.Palm and palmolein oils turn into solid form, due to high saturated eurisic acid content in them during the cold spell. It makes them unfit for mixing with other oils like mustard oil, the most consumed oil in the eastern region. Mustard oil does not become frozen even in the severest cold weather.
Imports of palmolein oil crossed all previous records in the current year, reaching 23,58,504 tonne during November 1999 to September 2000 against 19,84,145 tonne during the corresponding period of the previous year. Of this, more than 25 per cent is blended with mustard and groundnut oils. These blended oils are sold as "pure" mustard oil or "pure" groundnut oil.
But with winter stepping in, RBD palmolein starts solidifying, and demand falls immediately. Traders reduce their offtake as the frozen form of the oil becomes unfit for mixing with other popular oils.
This seasonal variation, has not stopped RBD palmolein from creating markets in hotels, restaurants and proccesed food segments. Of course, the current demand for RBD palmolein is lean and has pushed prices down to the season's lowest at Rs 21,000 a tonne at the local Posta market. Imports take place even after the huge duty burden at the rate of 70 per cent on RBD palmolein.Just few weeks ago, during end-November this item quoted at Rs 25,000 a tonne.
On November 14, the Centre hiked import duty on RBD palmolein to 70 per cent from 35 per cent to check unbridled imports. Persistent lobbying was on with Union Agriculture Minister Nitish Kumar to clamp additional duty as local oil extractors and farmers, were not getting remunerative prices.
Prices shot up to Rs 24,500-25,000 a tonne from Rs 22,000-23,000. Large scale availability of RBD palmolein has resulted in malpractices of mixing palmolein in mustard oil. u Kumar. Sethia.
According to him, mustard oil available in the markets are fully contaminated with palmolein or ricebran oils. Since RBD palmolein cannot be adulterated in winter, the traders indulging in malpractices have confined themselves to ricebran oil. Prices of ricebran oil, unlike palmolein, became dearer at Rs 25,000-26,000 a tonne, against pre-winter levels of Rs 23,000-24,000 a tonne.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
