Supplemental Statement - FARA

Received by NSD/FARA Registration Unit 08/23/2012 9:59:28 AM
MARKET Jgfcights
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India Outlook 2012
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Oils and Fats Supply & Demand
Production of oils and fats during Kharif
2011/12 season went up by at least
300,000 tonnes. Soybean and castor oils
are two main contributors of the increase
where soybean production alone
expected to increase by 280,000 tonnes.
Castor oil production is also contributing
to the increase in Kharif oil production but
most of castor oil is meant for export
market.
Base on Rabi sowing area, production is
estimated to be lower due to reduce
acreage in rapeseed cultivation area.
Rapeseed area for 2011/12 covers 6.53
million ha against 7.11 million ha in the
previous season. The estimated oil
production from rapeseed cultivation is
about 2:13 million tonnes, almost 190,000
less than the previous season.
Government of India moves towards
encouraging oilseed planting' through
10% increase in minimum support price
India: S& D Balance
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(MSP) to boost Rabi crop production
unable to encourage farmers to increase
oilseed acreage as the new MSP of
oilseed (rapeseed and mustard) remains
below the current market rates.
2011/12 oil year is expected to operate
almost 100,000 tonnes increase in India
oils and fats production through Kharif
and Rabi oilseed crops.
Base on the last three years, India has
been consistently keeping at least 1.6
million tonnes of various vegetable oils as
stock. We would expect that the situation
remains as that level could provide
secured feeling to the consumers and to
avoid any panic buying which could lift the
price not just in India but in the
international market. This is also to
control domestic price and maintain food
inflation in check.
In conclusion, India imports is expected to
increase even though domestic vegetable
oils production is expected to increase.
its imports despite the fact that Rupees is
depreciating against US Dollar and the
upward movement of oils and fats prices
in the international market could slow
down imports but it is still required to meet
growing domestic demand. Castor oil,
which recorded substantial increase,
does not have significant impact towards
domestic oils and fats supply as the oil is
mostly meant for exports.
It is estimated that in 2012 imports to go
up to 9.05 million MT as such volume
would give India a comfortable stock level
besides compensating the shortage.
India Vegetable Oils Import
Composition
With India's import in 2012 is expected to
increase by 4% to 9.05 million tonnes, the
volume is expected to be distributed
among four major oils, palm, soybean,
sunflower and palm kernel oil. These
four, made up 99% of the total India oils
and fats imports.
India: Vegetable Oils Production for 2011/12
|§|ll||Kharif illlB-l
Continued on page 101
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