India's palm oil imports rise sharply in September

4 Oct 2022 , 02:52 PM

 India’s imports of palm oil surged in September to their highest level in a year, according to Reuters report on Tuesday.

More purchasing may enable top producer Indonesia to reduce swollen inventories and maintain Malaysia’s benchmark palm oil prices, which have virtually fallen in half from this year’s record highs.

The average estimate from six traders showed that September imports increased 21% from a month earlier to 1.2 million tonnes, which was the greatest amount since September of last year.

Due to Indonesia’s efforts to reduce its inventory, palm oil is approximately $300 less expensive than soyoil for September shipments, according to dealers.

According to the report, India’s palm oil imports would remain high even in October, at approximately a million tonnes, as its significant discount continues and festivals continue to boost demand.

For shipments in October, crude palm oil is being offered in India at a price of $855 per tonne, including cost, insurance, and freight (CIF), as opposed to $1,207 for crude soy oil.

The Mumbai-based trade group Solvent Extractors’ Association of India is anticipated to release its September import data in the middle of October.

Imports of soy oil increased by 10% to 270,000 tonnes in September from a month earlier, while imports of sunflower oil increased by 22% to 165,000 tonnes, according to the report.

While importing soy and sunflower oil from Argentina, Brazil, Russia, and Ukraine, India mostly purchases palm oil from Indonesia, Malaysia, and Thailand.

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