First quarter palm oil import will up by 73 percent

The increasing price of palm oil in the world market has given rise to its import by 73 percent or 142.11 million dollars in the first three months (July-September) of the current fiscal year, said importers on Monday.
However, no such increase has been witnessed in the volume of palm oil import during this period, which the importers saw as normal, saying that it might go up in the next three months. According to official statistics, import of palm oil in terms of volume grew only four percent due to its skyrocketing prices in the world markets.
"Though, at present, palm oil is available in sufficient quantity to cater to the consumption demand across the country till January next year, the shortage like crisis could strike the local market afterwards," they said.
Expressing hopes, they said that fresh production of sunflower seeds would arrive in the local market in February next year, which could help relieve the grim situation in the absence of palm oil availability.
Discerning the increase in volume of palm oil import, importers said that it would, undoubtedly, mount manifold during next year due to the country's free trade agreement (FTA) with Malaysia, one of the largest palm oil producers of the world.
"The import duty concessions under the FTA agreement would impel the local importers to purchase palm oil in a greater quantity than ever and a huge boost in its import is going to be seen during the next year," they added. About the increasing prices of palm oil, they linked it with its multiple usage, particularly conversion into bio-diesel by the developed countries.
The official statistics revealed that the country had imported palm oil worth 336.313 million dollars during July-September period of the current fiscal year as compared to 194.203 million dollars during the corresponding period of the last fiscal year.
It showed a growth of 73.18 percent or 142.11 million dollars. Moreover, its import during the last one year since September 2006 has also mounted by 49 percent or 38.583 million dollars, as the country made import of palm oil worth 117.831 million dollars during September 2007 as compared to 79.248 million dollars during the corresponding period of the last fiscal year.
A surge of 13 percent or 13.36 million dollars in the palm oil import was seen in September 2007 as against August 2007, as it stood at 104.471 million dollars during August 2007. Currently, the palm oil's international price is 980 dollars per tonne, whereas the in the local market, it is being traded at Rs 31.20 per 37.342 kilogram, the importers said.