India is stepping up the purchase of cheap palm oil from Colombia and Guatemala, and for the first time in 5 years has bought rapeseed oil, which will increase pressure on prices.

India has purchased rapeseed oil for the first time in five years, with delivery in August, as local prices have risen to a 3.5-year high, making imports profitable, while the domestic rapeseed crop will only hit the market in March of next year, reports Reuters. By the end of the month, a shipment of 6,000 tons of rapeseed oil from the UAE will arrive at the port of Kandla in Gujarat. Usually, India buys palm oil from Indonesia and Malaysia, and soybean and sunflower oil from Argentina, Brazil, Ukraine, and Russia. In July, rapeseed oil prices on the spot market rose to their highest since February 2022 at $1,914.02/ton, which is 34% higher than last year. Some buyers are purchasing cheaper soybean oil instead of rapeseed oil, so its import into India is also increasing. For the first time in history, Indian importers have bought palm oil from Colombia and Guatemala, as its producers have accumulated significant stocks and offered products at large discounts. In the 2023/24 ...