India has cut palm oil imports by 27% due to rising prices

In August, compared to July, India reduced the import of edible oils by 17% to 1.53 million tons, in particular palm oil - by 27% to 791 thousand tons against the background of significant reserves and negative margins at oil refineries. This could lead to an increase in palm oil stocks in the main producers - Malaysia and Indonesia, which will increase the pressure on quotations.

 

In July, palm oil imports significantly exceeded local needs, so in August, refiners sharply reduced imports. Moreover, the prices of palm oil have risen to the level of the prices of soybean oil, so it has become uninteresting for buyers. Palm oil is usually sold cheaper than other vegetable oils, but now prices for September delivery are the same as competing oils.

 

The company GGN Research, which is engaged in the trade of edible oils, said that in August the margin of palm oil processing became negative, so processors reduced purchases.

 

At the same time, the import of sunflower oil in August decreased by 21% to 288,000 tons, and soybean oil - increased by 16% to the highest level in the last two years - 456,000 tons, because after the increase in rapeseed oil prices by 8%, some processors began to mix it with much cheaper soybean oil.

 

India plans to raise import duties on vegetable oils to protect local farmers who are suffering from falling oilseed prices.

 

The country imports palm oil mainly from Indonesia, Malaysia and Thailand, and soybean and sunflower oil - from Argentina, Brazil, Ukraine and the Russian Federation.

 

The Vegetable Oil Producers Association of India (SEA) plans to release August oil import data by mid-September.