India's Palm Oil Imports Take a Hit

12 Sep 2024 , 02:26 PM

India’s palm oil imports declined more than a quarter in August compared to the previous month, owing to ample domestic supplies and negative margins that deterred refiners from purchasing more of the tropical oil, a leading trade association said on Thursday.

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.

The Solvent Extractors’ Association of India (SEA) reported that India’s palm oil imports plummeted 26% in August from July to 797,482 metric tonnes.

Soyoil imports increased by 16% to 454,639 tonnes, while sunflower oil imports plummeted 22.5% to 284,108 tonnes, according to the report.

The decrease in imports of palm and sunflower oils reduced the country’s overall edible oil imports by 17% to 1.53 million tonnes.

“Refiners are shifting to soyoil from palm oil, as palm oil has become more expensive for Indian buyers in comparison to soyoil,” said a New Delhi-based trader with a worldwide trade business.

Palm oil normally trades at a discount to soft oils, but it is now being offered at a $40 per tonne premium over rival soyoil for September shipments, according to SEA.

Palm oil imports also declined in August due to excessive purchase in July, which resulted in a stockpile at refiners, according to the dealer.

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