PALMOILMAGAZINE, MUMBAI – In January 2024, palm oil imports in India reached their lowest level in the past three months, according to statements from five dealers reported by Reuters on Monday (5/2/2024). This decline was attributed to an increase in soyoil purchases as a substitute, driven by a decrease in price margins in crude palm oil distillation.
As the largest buyer of vegetable oil globally, India continued to maintain its vegetable oil supply from countries such as Indonesia and Malaysia. Consequently, this exerted downward pressure on palm oil prices in the market.
The dealers estimated that palm oil imports in January decreased by 12% compared to the previous month, totaling 787,000 metric tons. Additionally, CPO imports also decreased by 16% to 541,000 tons during the same period.
This happened for the significant purchase and distillery companies faced negative margins to the derivative products, such as, refine bleach deodorize (RBD) palm olein.
Rajesh Patel, business partner in vegetable oil trade and GGN Research broker, told that soyoil imports increased because of the competitive price to palm oil and margin distillery was in the positive.
Palm oil imports in January 2o24 increased 24% from the previous month that reached to be 190.000 tons. But the numbers were less that the monthly import average that reached 306.000 tons in the last year that ended on 31 October, as the traders considered.
They also predicted soyoil imports would significantly increase for a couple of months because of the price gap between palm oil and sunflower oil.
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Sandeep Bajoria, CEO Sunvin Group, a vegetable oil broker told that soyoil is now available within the same price with its competitors.
Vegetable oil industry association in India, Solvent Extractors’ Association of India (SEA) would probably publish January import data by the midst of February.
Sunflower oil imports in January 2024 decreased 19% to be 211.000 tons because of the increasing transportation cost after the attack of Houthi to the ports in Red Sea.
The impacts from the decreasing palm oil and soyoil imports were the total decreasing vegetable oil imports to be 1,19 million tons and they decreased 9,2% from the previous month, as the dealers thought. (T2)
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