27 Apr

India: Fresh stocks of imported olive oil yet to arrive

Consumers anticipating a decline in olive oil prices post duty reduction will have to wait for a few more days as fresh stocks imported after April 1 have not yet reached the market.

olive oil in india“We expect olive oil prices to go down by around 15 per cent, but a clear picture will emerge by mid-May because the fresh stocks imported after April 1 are still in transit and have not reached the market,” Indian Olive Association president V N Dalmia told PTI.

Pointing out that fall in prices of olive oil is subject to exchange rates remaining stable, he said much of the benefit of the duty reduction has been negated due to the recent appreciation of euro by almost 15 per cent.

“Euro has appreciated from Rs 55-63 in the last six months, wiping out the benefit margin that the industry could have otherwise passed on to consumers,” Dalmia said.

He said the duty reduction (on all grades of olive oil at 7.5 per cent from the previous 45 per cent on virgin olive oil and 40 per cent on refined olive oil and pomace oil) would give a boost to the industry and bring the healthy oil within the reach of average consumers.

Olive oil market in India is expanding rapidly. In 2007, the country imported 2,300 tons of olive oil and it is estimated that the import may go up to about 4,600 tons this year. The import figures may surge to about 28,000 tons in 2010 and 46,000 tons in 2012, Dalmia said.

India, primarily, imports olive oil from Spain and Italy.

He said the domestic production of the oil is nil as of now, but there has been a three-way collaboration between Israel, Rajasthan State Government and Indian firms to plant 1.25 lakh olive trees in 250 hectares in Rajasthan.

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