PALMOILMAGAZINE, NEW DELHI – India could hit a new record in vegetable oil imports, reaching 1.92 million metric tons, an increase of almost 26% from the previous month. Trade data showed that the country has imported about 1.2 million tons of vegetable oil since November 2023.
A government official reported that 1.45 million tons of vegetable oil had been distributed at various ports, including 850,000 tons of crude palm oil. By July, palm oil imports had increased by 45% compared to the previous month, reaching 1.14 million metric tons, the highest level in the past 20 months.
According to Reuters, a Malaysian minister visiting India said, “If India provides support, we would cooperate to produce palm oil,” indicating that the two countries would strengthen their cooperation in the palm oil industry.
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Sandeep Bajoria, CEO of Sunvin Group, mentioned that the correction in palm oil prices in May and June made it cheaper than other vegetable oils. “During this period, the refinery margin in India was good, encouraging refineries to stock up in July,” he said. The soyoil discount increased to $100 per ton in May, up from $10 per ton in April.
Besides, the speculation about increasing import duty that would be in the budget encouraged some traders to escalate palm oil purchase in July delivery even though Minister of Finance, India, Nirmala Sitharaman did not change import duty structure of edible oil into Union Budget in 2024 – 25 that was declared on 23 July.
Soyoil Imports Got Increased
Soyoil imports in July could be increasing 45% to the previous month or from 400.000 metric tons, the highest numbers in the past 13 months. Soyoil delivery from South America spent about more than six weeks. Some were postponed to get by in July, as Rajesh Patel said, the partner of vegetable oil trader and broker at GGN Research.
On the other hand, sunflower oil could be decreasing from 380.000 tons in July, or about 18% from last month – record. India imported palm oil particularly from Indonesia, Malaysia, and Thailand, while soyoil and sunflower oil, India should import from Argentina, Brazil, Russia, and Ukraine.
The import record showed the new dynamic in edible oil trade in the country. Palm oil still dominated and be the chance for local production that got much open. (P2)
