India buys over 200 thsd tons of palm oil after import duty cut

Indian importers bought more than 200 thsd tons of crude palm oil over the past week after the government cut import duties. Processors are actively rebuilding stocks ahead of the festive season and Diwali amid low inventories at distributors.

Last week, India halved the import duty on crude palm and soybean oil to 5%. The country imports around 60% of the vegetable oils it consumes, making buying activity highly sensitive to changes in import duties.

India typically imports 500–650 thsd tons of palm oil per month, but shipments could rise to 750 thsd tons during periods of peak demand. Market participants say purchases could accelerate further if global prices fall by another roughly $40/t.

Palm oil has become more attractive to Indian buyers following the recent price decline. In addition, despite the removal of the duty on crude sunflower oil, importers are favoring palm oil amid uncertainty over sunflower oil supplies from the Black Sea region.

Stronger buying by India could support the global palm oil market, where inventories among key producers remain high. In Malaysia, stocks are at their highest level this year, while Kuala Lumpur futures fell from an August high of 5,018 ringgit/t to 4,528 ringgit/t on October 1.

Tags: India, palm oil, imports