India’s edible oil imports surge by 34% in July
India’s edible oil imports rose 34% month-on-month to a 10-month high of 1.49 million tonnes in July, driven by refiners rebuilding stocks ahead of the festive season. Palm oil imports jumped 50% to 733,000 tonnes, soybean oil imports rose 32% to 501,000 tonnes, while sunflower oil shipments increased 4% to 253,000 tonnes.
Edible oil shipments to India increased by 34% in July – to a 10-month high of 1.49M tonnes – compared to the previous month, Knowledge and News Network (KNN) wrote.
The increase was due to a rise in purchases of palm and soyabean oil by refiners to replenish stocks ahead of the upcoming festival season, the 4 August report said.
According to estimates by industry dealers, palm oil imports jumped by 50% from June to 733,000 tonnes in July, marking a five-month high.
Soyabean oil imports increased by 32% to 501,000 tonnes, the highest level in seven months, while sunflower oil shipments rose 4% to 253,000 tonnes.
The increase in imports came amid declining domestic stocks following lower purchases in recent months, the report said.
At the time of the report, refiners were rebuilding inventories ahead of the festival season, when edible oil consumption typically increased.
Sandeep Bajoria, CEO of Mumbai-based vegetable oil brokerage Sunvin Group, said refiners were replenishing stocks to meet the expected seasonal demand.
Rajesh Patel, managing partner at Rajkot-based GGN Research, said soyabean oil imports could exceed 500,000 tonnes in August and September, supported by competitive international prices.
According to Patel, higher import demand was due to lower domestic rapeseed and soyabean crushing of rapeseed.
India primarily imports palm oil from Indonesia and Malaysia, while soyabean and sunflower oil are sourced mainly from Argentina, Brazil, Russia and Ukraine, according to the KNN report.
The import estimates excluded duty-free edible oil shipments entering India by land from neighbouring Nepal and the Solvent Extractors’ Association (SEA) of India was expected to release official July import data by mid-August.
Increased Indian purchases could support global edible oil markets by helping major producers such as Indonesia, Malaysia and Argentina reduce stocks, potentially supporting benchmark palm oil and soyabean oil futures, the report said.
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Source : OFI Magazine
