InfoSAWIT, MUMBAI – India’s palm oil imports surged 59% in October compared to the previous month, reaching 840,000 metric tons, the highest level in three months. This increase came as refiners sought to replenish dwindling stocks following low imports in recent months, combined with heightened demand during the festive season, according to traders' estimates.

The rise in imports is expected to reduce palm oil stocks in major producing countries like Indonesia and Malaysia, which could potentially support benchmark palm oil futures prices (FCPOc3).

Rajesh Patel, managing partner at GGN Research and an edible oil trader, highlighted that demand for cooking oil saw a notable spike during the festive season, prompting refiners to bolster their inventories. “In the past few weeks, Indians have celebrated the festivals of Dussehra and Diwali, which traditionally see a surge in consumption of sweets and fried foods,” he noted, as quoted by InfoSAWIT from freemalaysiatoday.com, Tuesday (12/11/2024).

Sandeep Bajoria, CEO of Sunvin Group, explained that palm oil prices in August were competitive, which encouraged Indian buyers to place orders. In addition, sunflower oil imports also witnessed a sharp rise, up 57% to 240,000 metric tons in October, driven by the arrival of shipments delayed in September, according to a trader in Mumbai.

Meanwhile, soybean oil imports saw a decline of 10%, dropping to 344,000 metric tons for the same period. Despite this, the increased imports of palm and sunflower oils lifted India’s total edible oil imports in October by 34%, reaching 1.42 million tons.

As the world’s largest importer of vegetable oils, India sources palm oil primarily from Indonesia, Malaysia, and Thailand, while soybean oil and sunflower oil are imported from Argentina, Brazil, Russia, and Ukraine.

Official data on India’s vegetable oil imports for October is expected to be released by the Solvent Extractors' Association of India (SEA) in mid-November. (T2)