Vegetable Oil Shortfall while Consumption Rising in India

India vegetable oil shortfall is expected to be around 10%, while the consumption has been rising around 3-4% every year. Due to lower production forecast for rabi crop amid rising consumption, price of vegetable oil in India may move high in 2012. India imports vegetable oil mainly from Indonesia, Malaysia and some others.

Around 9.3 million tons of vegetable oil is likely to be imported by the country to meet the growing demand. Last year, the India had imported 8.37 million tons.

According to the Solvent Extractors’ Association (SEA), delayed sowing of the rabi oilseeds coupled with bad weather conditions.

India's overall production of oilseed for 2011-12 is expected to be around 24.25 million tons.

Meanwhile, India's oilseed production for MY 2011/12 (Oct-Sep) is forecast higher at 35.6 million tons.

The Global oilseed trade for 2011-12 is projected at 110.5 million tons, down 2.6 million mainly reflecting reduced soybean export projections for Brazil, Argentina, and Paraguay.

Other major changes around the globe are higher rapeseed production for China and Russia, lower rapeseed and sunflowerseed production for Kazakhstan, and higher cottonseed production for Pakistan.