India’s Edible Oil Imports Hit Record High in July

India’s edible oil imports reached a record high of 1.76 million metric tonnes in July, as refiners stocked up in preparation for upcoming festivals amid uncertainty over supplies from the Black Sea. The country, which is the world’s biggest importer of vegetable oils, has been increasing its purchases, potentially lowering palm oil stocks in Indonesia and Malaysia and supporting benchmark futures. Additionally, this surge in imports could also strengthen soyoil futures and reduce inventories in sunflower oil-producing countries in the Black Sea region.

According to the Solvent Extractors’ Association of India (SEA), India’s average monthly edible oil imports in the 2021/22 marketing year stood at 1.17 million tonnes. In June, the country imported 1.3 million tonnes of edible oils. Palm oil imports saw a significant increase, rising from 683,133 tonnes in June to 1.09 million tonnes in July, the highest in seven months. The wider discount of palm oil compared to soyoil and sunoil prompted refiners to boost their purchases in anticipation of the upcoming festivals.

The import of sunflower oil experienced a notable leap of 73% from the previous month, reaching 330,000 tonnes, the highest in six months. On the other hand, soyoil imports declined by 22% to 340,000 tonnes, primarily due to delays in vessel unloading at Kandla port. Importers are maintaining significant oil reserves due to the Russia-Ukraine crisis, ensuring they remain well-stocked and avoid potential shortages.

India predominantly imports palm oil from Indonesia, Malaysia, and Thailand, while soyoil and sunflower oil are sourced from Argentina, Brazil, Russia, and Ukraine. The July vegetable oil import data is expected to be published by the SEA in mid-August.

Tags: palm oil, Black Sea, imports, stocks, futures, sunflower oil, edible oil, vegetable oils, refiners, Indonesia, India, Malaysia, soyoil