India Ramps Up Palm Oil Buying As Prices Drop: Report
India’s palm oil imports are projected to rise nearly 20% to 9.3 million tonnes in 2025-26 as declining prices make it more competitive than soyoil and sunflower oil. Refiners are booking aggressively, pushing total edible oil imports to a record 16.5–17 million tonnes amid growing consumption and tighter global supplies.
India is set to sharply increase its palm oil purchases in the 2025-26 marketing year, with imports projected to grow by nearly 20 per cent as lower prices boost the commodity’s appeal, as per a Reuters report
A rebound in buying by the world’s biggest importer is expected to draw down inventories in major producing hubs such as Indonesia and Malaysia, while also providing some support to Malaysian palm oil futures.
Sanjeev Asthana, president of the Solvent Extractors’ Association of India (SEA), told Reuters that palm oil has turned price-competitive compared with other edible oils following the recent decline, a shift he said is expected to boost import demand.
Asthana, who also serves as CEO of Patanjali Foods, estimated that India’s palm oil imports could climb to 9.3 million metric tonne in the 2025-26 season that began on 1 November, up from 7.58 million tons last year, the lowest volume in five years.
The previous marketing year saw palm oil arrivals drop 15.9 per cent, as the tropical oil traded at a premium to soyoil for most of the period. Now, with palm oil available at a discount of roughly USD 100 per tonne to soyoil and more than USD 200 to sunflower oil, refiners have resumed aggressive forward bookings, according to traders.
Imports of soyoil in the new season are expected to remain slightly above last year’s record 5.47 million tonne, while sunflower oil inflows are likely to ease to 2–2.5 million tons, compared with 2.9 million tons in the previous year due to higher prices driven by crop losses in the Black Sea region, Asthana said.
Overall, India’s edible oil imports are forecast to rise to an all-time high of 16.5–17 million tonne, supported by growing consumption, up from 16 million tonne last year.
Asthana added that the SEA signed a memorandum of understanding on Wednesday with the Federation of Oils, Seeds and Fats Associations, aimed at improving knowledge-sharing between the organisations and reducing import-related trade disputes.
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Source : Business World
