InfoSAWIT, MUMBAI – (Crude) palm oil imports in India could be decreasing 19% to its lowest level in the past eleven years because soyoil is much cheaper. Many traders chose to get more supply which once delayed because of crude palm oil (CPO) export ban by Indonesia, and the Government of India that published free tax on soyoil import.
Palm oil purchase by the biggest vegetable oil importer in the world would impact CPO price in Malaysia, increase the highest soyoil imports, and also increase soyoil price in US stocks.
CPO import in India in 2021/2022 which ended on 31 October could be decreasing to be 6,7 million tons, the lowest numbers since 2010/2011, as five dealers predicted in average, as quoted from The Economic Times.
Soyoil import in this year could be increasing 57% from the previous year to be 4,5 million tons, as the traders predicted.
The Government of India on Tuesday (24/5/2022) let free export tax for about 2 million tons of crude soyoil and crude sunflower oil in this year until next year which would end on 31 March 2023. This is part of maintaining local vegetable oil price.
“The structure made soyoil more interesting than CPO,” Chief Executive of Sunvin Group, a palm oil broker and consultant company in India, Sandeep Bajoria said.
Prior, CPO in India was on the floor at about US$ 1.775 per ton, including the cost, insurance, and delivery for June 2022 while soyoil was about US$ 1.845 in the same period.
For CPO has 5,5% of import tax, the effective price for the India’s buyers was US$ 1.873, Bajoria said.
The Government of Indonesia published the regulation to do CPO export on Monday after a three week – ban. But the stakeholders mentioned, they could not do export until there are details about how much vegetable oil should be provided for the domestic according to domestic market obiligation (DMO). (T2)