InfoSAWIT, MUMBAI – Vegetable oil imports in India decreased 19 percent to August imports that were the highest ones this year. It happened for the refinery in India reduced to purchase palm oil about 26 percent because of abundant stocks, as quoted from Reuters.

The decreasing imports in the biggest vegetable oil importer country in the world would increase palm oil stock in producer countries, namely Indonesia and Malaysia and could have something to do with its price.

Still from Reuters, many dealers showed that September 2023 total vegetable oil imports reached 1,5 million metric tons, including 830.000 tons of palm oil.

Rajesh Patel, Managing Partner at GGN Research broker and trade said that vegetable oil stocks never reached such level because of July and August imports. “This is the reason why traders minimized the imports,” he said.

The Solvent Extractors’ Association of India (SEA) mentioned, vegetable oil stock in the country increased to be 3,7 million tons on 1 September 2023, increased from 2,4 million tons in the previous year. 

Traders predicted sunflower oil imports also decreased 15 percent from the previous month that reached 310.000 tons, soyoil imports increased 2 percent that reached 365.000 tons.

India got palm oil stock from Indonesia, Malaysia, and Thailand, Soyoil and sunflower were imported from Argentina, Brazil, Russia, and Ukraine. Ashwini Bansod, Head of Commodity Research at Phillip Capital India Pvt Ltd, mentioned dry season in June and August, and slow planting would be a concern in vegetable oil production in the country. “This would increase imports in July and there would be festival in August,” he said. (T2)