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Dealers say that India's palm oil imports in April fell by 24% and are still below normal levels.

Five dealers report that India's imports of palm oil in April were down by almost a quarter compared to the previous month. This is the fifth month consecutively below normal levels. The premium paid for the tropical oil over its rival soyoil prompted a higher purchase of soyoil.

India's lower-than-normal imports of palm oil, the world’s largest buyer of vegetable oil, could put pressure on Malaysian palm oil and support U.S. soybean oil futures.

According to dealers' estimates, palm oil imports fell by 24% in April compared to the previous month to 322,000 tons.

Solvent Extractors' Association of India has reported that India imported more than 750,000 tonnes of palm oil per month on average during the marketing period ending in October 2024.

Sandeep Bajoria is the CEO of Sunvin Group. A vegetable oil brokerage. He said that palm oil prices were high due to a shortage, which encouraged buyers who are price sensitive to purchase more soyoil.

Dealers said that traders have been choosing lower-priced soybean oil for several months. Imports in April increased by 2% on a month-to-month basis to 363,000 tonnes. Imports of sunflower oil, on the other hand, dropped by nearly 6%, to 180,000 tons. This is the lowest level in seven months.

Dealers estimate that India's total imports of edible oils in April fell by 11% from the previous month due to lower imports of sunflower and palm oil.

Rajesh Patel of GGN Research, a trader in edible oils, explained that palm oil has started to trade at a lower price than soyoil. This is encouraging Indian buyers, who are interested in increasing their palm oil purchases, to do so for shipments starting from May.

India imports mainly palm oil from Indonesia and Malaysia. It also imports sunflower oil and soyoil from Argentina, Brazil and Ukraine.

GGN Research estimates that Nepal's edible oils imports fell to 85,000 tonnes in April from 135,000 tons a month earlier.

Patel stated that more than half of Nepalese imports end up being reexported to India as refined products, since the South Asian Free Trade Agreement allows goods from Himalayan countries to be tax-free. (Reporting by Rajendra Jadhav; Editing by Joe Bavier)

(source: Reuters)