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Dealers say that India's palm oil imports in May rose 87%, reaching a six-month record.

Five dealers report that India's imports of palm oil in May reached a six-month record, due to lower inventories, and the discount offered by palm oil over rivals soyoil or sunflower oil.

India, which is the largest buyer of vegetable oil in the world, may increase its palm oil imports and U.S. soybean oil futures.

According to dealers, palm oil imports rose 87% in May compared to the previous month, to 600,000 tons. This is the highest level since November 2024.

The Solvent Extractors' Association of India said that India imported more than 750,000 tonnes of palm oil per month on average during the marketing period ending in October 2024. It plans to publish its import data for May by mid-June.

According to Rajesh Patel of GGN Research, a trader in edible oils, palm oil imports dropped sharply between January and April because it was more expensive than soyoil. This led to a decrease in stock levels.

Patel stated that Indian buyers had returned to palm oil since palm oil began selling at a discounted price last month.

According to SEA, India's stocks of vegetable oil fell to 1,35 million tonnes on May 1, the lowest level since July 2020.

Dealers reported that soyoil imports rose by 10% in May, compared to the previous month, reaching 398,000 tons. This is the highest level since January. Imports of sunflower oil, on the other hand, increased by 2%, to 184,000 metric tonnes.

Dealers estimate that the increase in palm oil and soybean oil imports boosted India's edible oil imports by 37% compared to a month earlier, to 1,18 million tons. This is the highest level since December.

Sandeep Bajoria is the CEO of Sunvin Group. A vegetable oil brokerage. He says that palm oil imports will likely rise to 750,000 tonnes in June, and to 850,000 tons by July.

Bajoria stated that the recent reduction in import duties and correction of palm oil prices is likely to boost Indian consumption.

India reduced the basic import duty on crude edible oil to 10% last Friday in an effort to lower food prices and support the local refinery industry.

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 imported 132,000 tons of edible oil in May. This is up from 87,000 tonnes in April. (Reporting and editing by Kim Coghill; Rajendra Jadhav)

(source: Reuters)