InfoSAWIT, NEW DELHI - India could hit the new record in vegetable oil imports that reached 1,92 million metric tons, got escalated almost 26% to the previous month. Trade data showed that the country imported about 1,2 million tons vegetable oil that started since November 2023.
A government’s official mentioned about 1,45 million tons vegetable oil had been distributed in many ports, including 850.000 tons (crude) palm oil. By July, palm oil imports got escalated 45% to the previous month or from 1,14 million metric tons, the highest numbers since the past 20 months.
As quoted from Reuters, a minister of Malaysia that was visiting India said, "If India provides reas, we would be in cooperation to produce palm oil.” This meant the two countries would escalate their cooperation in palm oil industries.
Sandeep Bajoria, CEO Sunvin Group mentioned that palm oil price correction in May and June made it cheaper than other vegetable oils. “During the period, the refinery margin in India was good, encouraging the refineries to get stocks in July,” he said. Soyoil discount got more expensive, or from US$ 100 per ton in May while in April it was only US$ 10 per ton.
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. (T2)
