India’s soyoil imports hit record high in August

India sharply increased vegetable oil purchases in August ahead of the peak festive demand season. Soyoil imports rose 21% from July to a record 601 thsd tons, while palm oil imports increased by 7% to 780 thsd tons, the highest level in six months.

India’s total edible oil imports increased by 4% in August to 1.54 mln tons, an 11-month high. The figures exclude duty-free shipments arriving by land from neighbouring Nepal, estimated at another 100 thsd tons, including 90 thsd tons of soyoil.

Purchases were supported by refiners building stocks ahead of the seasonal increase in consumption and attractive prices for nearby deliveries. India celebrates a series of major festivals between August and November, when demand for edible oils traditionally peaks.

The import mix changed particularly sharply due to developments in the sunflower oil market. India’s sunflower oil imports fell 38% to 157 thsd tons, a six-month low, amid disruptions to shipments from the Black Sea region. At the same time, soyoil was more competitively priced than palm oil, encouraging stronger purchases.

India is the world’s largest importer of vegetable oils, sourcing most of its palm oil from Indonesia and Malaysia, while soyoil and sunflower oil mainly come from Argentina, Brazil, Ukraine and Russia. Market participants expect soyoil and palm oil imports to remain high in September, potentially supporting global prices.

Tags: soybean oil, Indonesia, India, Malaysia, imports