In 2018-19 domestic production of oil extracted from seeds is estimated at seven million tonnes due to lower Kharif crop.
B V Mehta, Executive Director, SEA, said, “Domestic production of oil seeds in rabi season is expected to be higher following improved surface and ground water reserves. This will help increase domestic production of edible oil.
” He believes the additional demand arising out of an increase in population is expected to be met by higher domestic production and that imports can be contained at the current level or may rise by about 2-3 per cent at the most.
According to an SEA note, “The government imposed five per cent safeguard duty on RBD Palmolein/Palm Oil of Malaysian origin on September 4, which widened the difference between crude and refined palm oil duty to 10 per cent."
The note alos says that traders fear India may curtail palm oil imports from Malaysia following that country's hostile attitude towards India at the United Nations. As a result, many importers and refiners may source their requirements from Indonesia instead of Malaysia in November and December.
In September, Malaysia had used the United Nations as a platform to accuse India of invading and occupying Jammu & Kashmir.