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Indian oil trade upbeat over new import norms

Indian importers heaved a sigh of relief on Wednesday after the government eased port access restrictions and decided to open up eight more ports to receive edible oil, port officials and traders said.

Importers in India, the world's largest vegetable oil buyer, were worried after the government last week decided to restrict vegetable oil imports to a select group of six ports to facilitate monitoring of overall purchases.

The six ports were Bombay, Jawaharlal Nehru Port Trust, Calcutta, Cochin, Vishakhapatanam and Madras. Dealers had warned that restricting edible oil imports to six ports would lead to congestion at the ports and hit supplies to landlocked states.

But on Tuesday the government revised the order and raised the number of ports that can import edible oils to 14.

Officials said the seaports of Bedi, Kandla, Mundra, Marmagoa and Jamnagar on the western coast, Haldia in eastern India, and Kakinada and New Mangalore in the south were added to the list.

"The air of uncertainty has been removed. This should enable traders to enter into fresh contracts for delivery of edible oils into Kandla port," Vipul Mitra, vice-chairman of Kandla Port Trust said.

India's busiest Kandla port and private sector Mundra port on the western coast account for 35 to 40 per cent of the country's edible oil imports.

A large number of hydrogenated vegetable oil (vanaspati) manufacturers and crude refiners in landlocked northern states import vegetable oils through the eight additional ports.

ENDING IMPORT CURBS

India said last week 300 consumer goods from edible oils, toys and second-hand cars could only be brought into the country through 11 selected entry points versus 211 previously.

The announcement followed a move in April to end import curbs on more than 700 products to comply with a World Trade Organisation ruling.

Dealers said Indian imports of edible oils were not affected by the order because the governmenthad revised its decision before it came into force.

"The amendment came at the right time, it has not affected our imports in any way," an Ahmedabad-based importer said.

They said domestic edible oil prices, expected to soften with Tuesday's order, remained steady with an overnight surge in CBOT soyoil prices.

"Any downward pressure on prices due to the increase in number of designated ports for oil imports have been nullified by the overnight surge in CBOT soyoil prices and Malaysian palm oil prices," oil trader Deepak Shah said.

Crude soyoil in the Bombay oil market rose marginally to Rs 226 for 10 kg from Tuesday's Rs 224.

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