India's palm oil imports fall in August 2024

Published 2024년 9월 11일

Tridge summary

India, the world's largest importer of vegetable oils, has reduced its purchases, potentially leading to an inventory build-up in Indonesia and Malaysia and putting downward pressure on palm oil futures. This is due to higher costs making palm oil less competitive and falling refiner margins. As a result, soybean oil imports rose 16% in August 2024, while sunflower oil imports fell 21%. Overall, India's total edible oil imports dropped 17% to 1.53 million tonnes. The government is considering increasing import duties on edible oils to protect farmers from low oilseed prices.

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Original content

The reduction in purchases by the world’s largest importer of vegetable oils could lead to a build-up in inventories in key producers Indonesia and Malaysia, putting pressure on palm oil futures. Sandeep Bajoria, CEO of Sunvin Group, said that in July 2024, India’s palm oil imports exceeded domestic demand, prompting producers to cut imports in August 2024. In addition, palm oil has become more expensive after a recent price surge, making it less competitive compared to other vegetable oils. Refiners’ margins fell in August 2024, prompting them to cut purchases. Soybean oil imports also rose 16% in August 2024 to 456,000 tonnes, a two-year high. Domestic rapeseed oil prices also rose more than 8% in August, prompting some processors to blend the two oils. Sunflower oil imports in August 2024 fell 21% to 288,000 tonnes. A drop in palm oil and sunflower oil imports caused the country's total edible oil imports to fall 17% to 1.53 million tonnes. India is considering raising ...

Source: Vinanet