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Informist, Friday, Jul 19, 2024

 

--Sunvin CEO Bajoria: Edible oil use seen rising to 29 mln tn by 2030

--Sunvin Bajoria: India edible oil output seen up at 12 mln tn in 5 yr

--Sunvin Bajoria: See BMD palm oil at 3,750-4,100 ringgits/tn by Sep

--Sunvin Bajoria: See CBOT soyoil at 43.50-47.50 cents/pound by Sep

--NCDEX MD Raste: Govt must allow resuming trade in oilseed futures

 

NEW DELHI - India can only attempt to freeze edible oil imports at current levels, as consumption growth is seen outpacing domestic output by 2030, according to Sunvin CEO Sandeep Bajoria. 

 

"Imports are not likely to fall. The best we can do is check imports and freeze at current levels," Bajoria said on the second day of the two-day Vegoils Vision 2030 conference in New Delhi. India's annual edible oil imports are around 16 mln tn.

 

By 2030 consumption will rise to 29 mln tn from 26 mln tn. Meanwhile, domestic production is seen growing to 12 mln tn from 10 mln tn, he added. 

Apart from growing consumption demand, there is also rising competition for biofuels, Bajoria said. Of the 202.5 mln tn global edible oil production, about 31.02% is used for biodiesel production. 

 

Among the constituents of the edible oil basket, palm oil, soyoil, and rapeseed oil are used the most for blending with diesel. "Sunflower is truly a food oil as 97% of it is used for consumption," Bajoria said. About the feasibility of diverting food for fuel production, Bajoria said that India can only afford to divert used cooking oil for making biofuel.

 

However, India is yet to set up a robust mechanism to collect used cooking oil for biodiesel production. Indian households have the problem of reusing used cooking oil, but it finally does get discarded, he added.

 

Globally, around 9 mln tn of used cooking oil is used to make biodiesel. Though India consumes around 16 mln tn of cooking oil, the country has not set up a robust system to collect used kitchen oil for making biodiesel.

 

Meanwhile, National Commodity and Derivatives Exchange Managing Director Arun Raste said the government must lift the ban on oilseed futures trading as it provides price signals to farmers and allows traders to hedge against volatility.

 

In 2021, SEBI suspended futures and options trading for a year in a host of agricultural commodities such as wheat, chana, mustard seed, crude palm oil, moong, paddy (Basmati), soybean and its derivatives. Last year, SEBI extended this ban till December 20, 2024.

On prices, Bajoria sees crude palm oil October futures on Bursa Malaysia Derivatives Exchange around 3,750-4,100 ringgits per tn (66,850.91-73,090.33 rupees per tn) by September. While December soyoil futures on the Chicago Board of Trade are seen around 43.50-47.50 cents per pound. At 1640 IST, the most traded December soyoil contract was up 0.7% at 44.66 cents per pound. 

 

The cost and freight charges of August shipments to India of crude palm oil, soyoil, and sunflower oil till September are seen at $930-$990 per tn, $985-$1,025 per tn, and $1,020-$1,050 per tn, respectively, according to Bajoria.  End

 

US$1 = 83.66 rupees

 

Reported by Afra Abubacker

Edited by Deepshikha Bhardwaj

 

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