GGN Research sees India May edible oil imports at 1.34 mln tn, up 7% on year
India’s edible oil imports rose to a five-month high of 1.34 million tonnes in May, driven by higher palm oil and soyoil purchases. Rising crude oil prices, freight costs, Middle East tensions, and a weaker rupee are expected to keep import costs elevated.
MUMBAI – India’s edible oil imports in May are estimated at a five-month high of 1.34 million tonnes, up 2% on month, driven by strong palm oil and soyoil imports, according to GGN Research. On a year-on-year basis, imports of edible oil in May are estimated to have risen 7%, it said.
India’s palm oil imports are estimated to have risen to 549,000 tonnes in May, registering a 7% month-on-month increase. However, on an annual basis, they are seen 7% lower. “During the current oil year (Nov-Oct), the share of palm oil imports increased to 50% from 43% a year ago, while the share of soft oils fell to 50% from 57% last year,” Rajesh Patel, managing partner at GGN Research, told Informist.
Soyoil imports rose 37% on month in May and 24% on year to 494,000 tonnes, Patel said. “On a monthly basis, soyoil imports were at a five-month high,” he said.
Sunflower oil imports fell 32% on a monthly basis to 296,000 tonnes due to ample stocks, Patel said. Yet, on an annual basis, sunflower oil imports rose significantly by 62%, according to GGN Research.
India’s import of edible oils from Nepal in May was around 60,000 tonnes, which is not included in the total import figures, Patel said. In May, Nepal’s edible oil imports through Indian ports totalled 88,000 tonnes, comprising 78,000 tonnes of soyoil, 3,000 tonnes of palm oil, and 7,000 tonnes of sunflower oil, he said.
As of Jun. 1, there were additional vessels waiting to discharge or arrive in the next few days, carrying a total of 245,000 tonnes of edible oils, of which 100,000 tonnes are palm oil, 80,000 tonnes are soyoil, and 65,000 tonnes are sunflower oil.
Since the outbreak of hostilities in West Asia between the US-Israel combine and Iran, edible oil prices have risen, driven by a combination of higher global crude oil prices, rising freight costs, and slowdown in import shipments, raising concern among traders, processors, and consumers ahead of the summer demand, Indrajit Paul, head of research at Agrocorp International, said. The edible oil import bill is expected to remain high in the second half of the oil year 2025-26 (Nov-Oct), as the conflict in West Asia and the weakening rupee are likely to keep imports high in value terms, market experts said.
In the second half of the oil year, crude palm oil prices are likely to rise by nearly 8%, as forecasts from Indonesia’s meteorological agency indicate an earlier-than-normal dry season across key Sumatran growing regions from April, which could trim yields, Paul said. Crude soyoil prices could rise by nearly 5%, although record global crushing levels may limit further gains. Crude sunflower oil prices could rise by 8–15% through Aug–Sept before easing from October onwards, market participants said.
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Source : INFORMIST
