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Palm Oil Imports in India Decreased to the Lowest Level in Nine Months

Doc. InfoSAWIT
Palm Oil Imports in India Decreased to the Lowest Level in Nine Months

InfoSAWIT, MUMBAI – Palm oil imports to India in February 2024 drastically decreased to the lowest level in nine months. It was reported by six dealers to Reurters. Tuesday. It happened for the increasing price and encouraged buyers to reduce tropical oil purchase and substituted to purchase sunflower oil.

India, as the biggest palm oil importer in the world, did purchase palm oil about 504.000 metric tons in February, as the dealers predicted. The numbers decreased 35,6% from the previous month, and the lowest numbers since May 2023.

Managing partner at vegetable oil trader and broker, GGN Research, Rajesh Patel said that palm oil imports significantly decreased because of the continuous negative margin. “While soyoil and sunflower oil got more competitive price,” he said, as quoted from Reuters.

Though palm oil was cheaper in trade, the decreasing stock made it more expensive than its competitors. Sunflower oil imports, for instance, increased 34% to be 295.000 tons last month, while sunflower imports decreased 7,9% to be 174.000 tons.

The dealers also told, crude palm oil (CPO) was offered at about US$ 965 per metric ton in India for April delivery, while soyoil and sunflower oil were offered at about US$ 950 dan US$ 928 per ton for each.

Besides, sunflower oil delivery postponement from the previous month did contribute to escalate its imports in February because of the attack of Hauthi around Red Sea.

The decreasing soyoil and palm oil imports also decreased vegetable oil imports in India in February to be 973.000 tons, reached the lowest level in hardly two years within the decreasing 18,4% from the previous month.

The official February import data might be published by Solvent Extractors' Association of India (SEA) in the midst of March.

India mostly purchased palm oil from India, Malaysia, and Thailand, while soybean and sunflower were purchased from Argentina, Brazil, Russia, and Ukraine. (T2)