Crude imports hit a nine-year low in May

Mumbai, Ta. 24 June 2020, Wednesday

India's crude oil imports fell to a nine-year low in May. Refiners were forced to cut purchases due to domestic shipments. The lockdown has had an impact on crude oil demand as industrial activities in the country have stalled. In May, India's daily crude oil imports stood at 41.50 lakh barrels, down 21 per cent from April and 6 per cent lower than in May last year.

In April, Indian refineries filled their tanks to take advantage of crude oil prices. Excess crude was sold to the government to build strategic reserves and imports were halted due to corona, oil company sources said.

Crude oil imports are likely to increase in June as demand picks up with the lockdown eased. The country's refineries usually stockpile crude oil for one to two months.

Meanwhile, according to another report, India's flour exports in May this year have increased by 3% compared to 2016. According to the Solvent Extractors' Association of India (C), flour exports in May stood at 3,6,8 tonnes, up from 3,01,4 tonnes in May last year.

The increase in exports of Rayda flour was attributed to an increase in the overall export of flour. Exports of rye flour, which stood at 7 tonnes in May last year, have risen to 1,3,8 in May this year. In the first two months of the current financial year, total flour exports fell by 9 per cent to 2,8,50 tonnes as compared to the first two months of the current financial year, according to Cena data. Exports are said to have been affected due to lockdowns and disruption of transport services.

India's major flour export markets have seen a decline. India's meal imports from Thailand fell by 21 per cent in April-May. Similarly, imports from South Korea fell by 12 per cent and from Vietnam by 15 per cent.