Latest News

India's palm oil imports in June jump 60%, reaching an 11-month high

An industry group said that India's imports of palm oil reached an 11-month peak in June, as refiners increased purchases because they were offered a discount on soyoil or sunflower oil and also to replenish their depleted stocks.

India's increased palm oil imports, as the world's largest buyer of vegetable oil, will help to reduce stocks in top producers Indonesia, and Malaysia, and support benchmark Malaysian Palm Oil futures.

Solvent Extractors' Association of India said that palm oil imports increased by 60% in June compared to May, reaching 955,683 metric tonnes, a record high since July 2024.

The industry association reported that imports of sunflower oil increased 17.8%, to 216.141 tons. Imports soyoil fell 9.8%, to 359.504 tons.

It said that domestic vegetable oil stockpiles rose for the first month in seven to 1,568 million tonnes on July 1. This was up from the previous month's 1,33 million tons which was the lowest level since nearly five years.

Rajesh Patel of GGN Research, a trader in edible oils, stated that palm oil imports will likely remain above 900 000 tons for the second consecutive month in July, as the oil can be purchased at a discounted price compared to other oils.

Patel stated that the imports of soyoil would increase to 450,000 tons by July. This is because vessels which were unable unload their cargo at Kandla Port in Gujarat's western state in June are expected to discharge this month.

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

India reduced the import tax for crude edible oil by half to 10%, in an effort to lower food prices and support the domestic refinery industry.

(source: Reuters)