India Cuts Palm Oil Imports Amid Rising Prices

3 Oct 2024 , 02:29 PM

In September, India’s palm oil imports fell by nearly a third compared to the previous month due to rising tropical oil prices, prompting refiners to postpone purchases, according to a report by ET.

Lower purchases by the world’s largest importer of vegetable oils may result in increased palm oil stocks in key suppliers Indonesia and Malaysia, dragging on benchmark futures.

Palm oil imports decreased 34% in September from the previous month to 530,000 metric tonnes, according to dealer estimates as reported by ET.

Palm oil usually trades at a discount to soft oils, but it is currently being offered at a premium for October shipments.

In mid-September, India increased its basic import tax on crude and refined edible oils by 20 percentage points.

Soyoil imports plummeted 15% to 388,000 metric tonnes in September from the previous month, while sunflower oil imports fell 49% to 145,000 metric tonnes, the lowest in ten months, according to dealers.

According to dealers, the decline in imports of palm oil, soyoil, and sunflower oil reduced the country’s overall edible oil imports by 31% to 1.06 million tonnes.

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