India is poised to import a record 1.92 million metric tons of edible oils for July delivery, driven by significant purchases of palm oil and soyoil as refiners capitalize on favorable prices amid expectations of an impending hike in import duties. This marks an increase of nearly 26% from the previous month.
As the world’s largest importer of vegetable oils, India’s heightened palm oil purchases will assist in reducing inventories in major producing countries like Indonesia and Malaysia, thereby supporting benchmark prices. So far in the current marketing year, which began in November 2023, India has been importing an average of 1.2 million tons of edible oil.
According to a government official, approximately 1.45 million tons of edible oils have already arrived at various ports, including 850,000 tons of palm oil. July’s palm oil imports are anticipated to surge by 45% from the previous month to 1.14 million metric tons, the highest level in 20 months.
The drop in palm oil prices during May and June made it more competitive compared to rival oils, coupled with healthy refining margins that prompted refiners to place orders for July shipments. The price gap between palm oil and soyoil widened significantly, encouraging bulk purchases.
Soyoil imports are also expected to rise by 45% from last month to 400,000 metric tons, the highest in 13 months. Delayed shipments from South America contributed to this increase. Conversely, sunflower oil imports are projected to decrease to 380,000 tons, a drop of 18% from last month’s record.
India primarily sources palm oil from Indonesia, Malaysia, and Thailand, while soyoil and sunflower oil are imported from Argentina, Brazil, Russia, and Ukraine.