India’s palm oil imports in September saw a sharp decline of nearly one-third compared to the previous month, marking a six-month low. The͏͏ increase͏͏ in͏͏ tropical͏͏ oil͏͏ prices͏͏ made͏͏ it͏͏ costlier͏͏ than͏͏ competing͏͏ oils,͏͏ leading͏͏ refiners͏͏ to͏͏ hold͏͏ off͏͏ on͏͏ purchases,͏͏ according͏͏ to͏͏ five͏͏ dealers.
Reduced͏͏ buying͏͏ by͏͏ the͏͏ world’s͏͏ largest͏͏ vegetable͏͏ oil͏͏ importer͏͏ could͏͏ boost͏͏ palm͏͏ oil͏͏ inventories͏͏ in͏͏ major͏͏ producers͏͏ Indonesia͏͏ and͏͏ Malaysia,͏͏ potentially͏͏ putting͏͏ pressure͏͏ on͏͏ benchmark͏͏ futures.
Palm͏͏ oil͏͏ imports͏͏ in͏͏ September͏͏ dropped͏͏ 34%͏͏ from͏͏ the͏͏ prior͏͏ month͏͏ to͏͏ 530,000͏͏ metric͏͏ tons,͏͏ based͏͏ on͏͏ estimates͏͏ from͏͏ dealers.
Continue͏͏ Exploring:͏͏ India’s͏͏ palm oil imports͏͏ plummet͏͏ 26%͏͏ in͏͏ August͏͏ as͏͏ buyers͏͏ favour͏͏ soyoil
“Last͏͏ month,͏͏ palm͏͏ oil͏͏ prices͏͏ surpassed͏͏ those͏͏ of͏͏ soybean͏͏ and͏͏ sunflower͏͏ oils.͏͏ At͏͏ the͏͏ same͏͏ time,͏͏ India͏͏ raised͏͏ import͏͏ duties,͏͏ leading͏͏ some͏͏ refiners͏͏ to͏͏ cancel͏͏ contracts,”͏͏ stated͏͏ Sandeep͏͏ Bajoria,͏͏ CEO͏͏ of͏͏ Sunvin͏͏ Group,͏͏ a͏͏ vegetable͏͏ oil͏͏ brokerage.
Palm͏͏ oil͏͏ usually͏͏ sells͏͏ at͏͏ a͏͏ discount͏͏ compared͏͏ to͏͏ soft͏͏ oils;͏͏ however,͏͏ for͏͏ October͏͏ shipments,͏͏ it͏͏ is͏͏ currently͏͏ being͏͏ offered͏͏ at͏͏ a͏͏ premium͏͏ over͏͏ these͏͏ soft͏͏ oils.
In͏͏ mid-September,͏͏ India͏͏ increased͏͏ the͏͏ basic͏͏ import͏͏ duty͏͏ on͏͏ crude͏͏ and͏͏ refined͏͏ edible͏͏ oils͏͏ by͏͏ 20͏͏ percentage͏͏ points.
According͏͏ to͏͏ dealers,͏͏ soyoil͏͏ imports͏͏ in͏͏ September͏͏ decreased͏͏ by͏͏ 15%͏͏ from͏͏ the͏͏ previous͏͏ month͏͏ to͏͏ 388,000͏͏ metric͏͏ tons,͏͏ while͏͏ sunflower͏͏ oil͏͏ imports͏͏ dropped͏͏ 49%͏͏ to͏͏ 145,000͏͏ metric͏͏ tons,͏͏ marking͏͏ the͏͏ lowest͏͏ level͏͏ in͏͏ 10͏͏ months.
Shift͏͏ in͏͏ Edible͏͏ Oil͏͏ Import͏͏ Dynamics:
The͏͏ decline͏͏ in͏͏ imports͏͏ of͏͏ palm͏͏ oil,͏͏ soyoil,͏͏ and͏͏ sunflower͏͏ oil͏͏ led͏͏ to͏͏ a͏͏ 31%͏͏ reduction͏͏ in͏͏ the͏͏ country’s͏͏ total͏͏ edible͏͏ oil͏͏ imports,͏͏ which͏͏ fell͏͏ to͏͏ 1.06͏͏ million͏͏ tons,͏͏ according͏͏ to͏͏ dealer͏͏ estimates.
India͏͏ primarily͏͏ sources͏͏ palm͏͏ oil͏͏ from͏͏ Indonesia,͏͏ Malaysia,͏͏ and͏͏ Thailand,͏͏ while͏͏ it͏͏ imports͏͏ soyoil͏͏ and͏͏ sunflower͏͏ oil͏͏ from͏͏ Argentina,͏͏ Brazil,͏͏ Russia,͏͏ and͏͏ Ukraine.
The͏͏ Solvent͏͏ Extractors’͏͏ Association͏͏ of͏͏ India͏͏ (SEA)͏͏ is͏͏ expected͏͏ to͏͏ release͏͏ its͏͏ data͏͏ on͏͏ September͏͏ imports͏͏ by͏͏ mid-October.
“Palm͏͏ oil͏͏ imports͏͏ are͏͏ expected͏͏ to͏͏ increase͏͏ in͏͏ October͏͏ due͏͏ to͏͏ the͏͏ festive͏͏ season.͏͏ We͏͏ anticipate͏͏ shipments͏͏ exceeding͏͏ 750,000͏͏ tons,”͏͏ said͏͏ a͏͏ dealer͏͏ from͏͏ a͏͏ global͏͏ trade͏͏ house͏͏ based͏͏ in͏͏ Mumbai.
