India cut vegetable oil imports to a six-month low in September amid rising prices

In September, compared to August, India cut palm oil imports by 34% to a six-month low of 530,000 tonnes, as its prices became higher than those of competing soybeans and sunflowers. Palm oil typically sells for less than other oils, but now prices for October delivery are outpacing competing oils.

At the same time, the country's authorities in mid-September increased the basic duty on the import of crude and refined vegetable oils by 20%, which forced some processors to terminate their contracts.

A reduction in purchases by the world's largest importer of vegetable oils may lead to an increase in palm oil stocks in the main producers - Malaysia and Indonesia, which will increase pressure on quotations.

Imports of soybean oil in September decreased compared to August by 15% to 388,000 tons, sunflower oil by 49% to a 10-month low of 145,000 tons, and total imports of edible oils decreased by 31% to 1.06 million tons.

We will remind that India buys palm oil mainly from Indonesia, Malaysia and Thailand, and soybean and sunflower oil - from Argentina, Brazil, Ukraine and the Russian Federation.