India's palm oil imports lowest in 14 years, risking pressure on global prices
India imports palm oil at lowest in 14 years as refineries turn to cheaper soybean oil, risking impact on global palm oil prices
On February 4, 2568, Reuters news agency reported that India's palm oil imports fall to near 14-year low in January As refineries turn to cheaper soybean oil instead, palm oil refining costs are negative and profitable.
India's palm oil imports fell 46% from December 2567 to 272,000 metric tons, the lowest level since March 2554.
As the world's largest importer of vegetable oils, India's reduced purchases of palm oil could put pressure on global prices, especially from Malaysian palm oil, a major exporter, but will support future US soybean oil prices.
Data from the Solvent Extraction Society of India specify that India imported more than 750,000 tonnes of palm oil per month in the fiscal year ending October 2567 and is expected to release official import figures for January by mid-month.
In January, soybean oil imports rose 4% from the previous month to 438,000 metric tons, the highest level in 7 months, and sunflower oil imports rose 9.5% to 290,000 metric tons. In addition, the decline in palm oil imports also led to a 15.6% decline in India’s total vegetable oil imports to 1 million tonnes, the lowest level in 11 months.
Mr. Rajesh Patel, Managing Partner, GGN Research said Negative palm oil refining margins have discouraged Indian refiners from buying palm oil from abroad, even though palm oil is generally traded at a lower price than soybean and sunflower oils. But the reduced supply has pushed palm oil prices higher than other options.
Mr. Sandeep Bajoria, CEO of Sunvin Group revealed that Palm oil, which normally accounts for more than half of India's vegetable oil imports, has fallen below 30% for the first time in more than a decade.
India mainly imports palm oil from Indonesia, Malaysia and Thailand, while it imports soybean oil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
refer : reuters.com
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