India reduced imports of sunflower and rapeseed oil in favor of palm oil
According to dealers, India’s palm oil imports increased slightly in November as low prices prompted refiners to increase purchases and reduce imports of more expensive oils, such as soybean and sunflower, Reuters reports.
India’s increased palm oil imports could help Indonesia and Malaysia, its leading palm oil producers, reduce inventories and support benchmark Malaysian palm oil futures, while simultaneously putting pressure on U.S. soybean oil futures.
According to dealer estimates, India’s palm oil imports in November rose to 630,000 tonnes, up 4.6% from October. Meanwhile, soybean oil imports fell by 12% to 400,000 tonnes, while sunflower oil imports fell by 44%, reaching a two-year low of 145,000 tonnes.
India’s total edible oil imports in November fell by 11.5% month-on-month to a seven-month low of 1.18 million tonnes.
The import data includes approximately 30,000 tonnes of soybean oil imported duty-free across land borders from Nepal.
Indian buyers are increasing their purchases of palm oil for delivery within the month, as it is nearly $100 per tonne cheaper than competing soybean oil, noted Aashish Acharya, vice president of Patanjali Foods Ltd., a leading edible oil importer. “Palm oil imports could increase to 750,000 tonnes in December,” he said.
Dealers estimate that rapeseed oil imports in November halved compared to the previous month, reaching 5,000 tons.
The price of sunflower oil is more than $200 per ton higher than palm oil and $100 per ton higher than soybean oil, prompting buyers to seek cheaper alternatives, noted Rajesh Patel, managing partner of GGN Research, a research firm that trades edible oils.
India imports palm oil primarily from Indonesia and Malaysia, and soybean and sunflower oil from Argentina, Brazil, Russia, and Ukraine.
Got additional questions?
We will be happy to assist!
Write to us
Our manager will contact you soon