As prices in the global market continued to decline, vegetable oil imports increased 30 per cent in November compared with the same period a year ago. Total veg oil imports in the country shot up to 555,342 tonnes in November this year as compared to 427,912 tonnes in the corresponding month last year. Of this, edible and non-edible oil comprised 519,032 tonnes and 36,310 tonnes, respectively. Import of RBD palmolein was reported at 137,959 tonnes as compared to 30,014 tonnes in the same month last year. The share of refined oil increased to 27 per cent from 25 per cent in October this year.

Total imports of crude also jumped to 381,073 tonnes compared to 317,306 tonnes. However, a feature of the import scenario was that not a single tonne of either degummed (crude) soyabean oil or refined soyabean oil was imported during the month. Meanwhile, the landed cost difference between crude palm oil (CPO) and soybean oil jumped by 20.45 per cent since the government levied 20 per cent import duty on the latter mid-last month. The difference in landed cost has perked up to over $440 a tonne from $350 a tonne before the increased import duty on November 18. The levy has made import of soybean oil even less attractive, resulting into "nil" import in November 2008.

This season's imports are also seen up as the kharif oilseed crop has been projected lower compared with the last year. According to trade estimates, oilseeds production during the kharif season has been pegged at 266.1 lakh tonnes against 270.6 lakh tonnes last season. This is in view of a projected fall in groundnut and sunflower production, despite hopes of a record soya bean crop.

Edible oil imports have been rising consistently during the last few years in view of the Indian middle classs's rising purchase power, while domestic production has been unable to meet the growing demand.