India’s Edible Oil Imports Surge 34% To 10-Month High In July

New Delhi, Aug 4 (KNN) India’s edible oil imports rose 34 percent month-on-month to a 10-month high of 1.49 million tonnes in July, as refiners increased purchases of palm oil and soyoil to replenish inventories ahead of the upcoming festival season.

Edible Oil Imports Hit 10-Month High In July

According to estimates by industry dealers, palm oil imports jumped 50 percent from June to 733,000 tonnes in July, marking a five-month high. Soyoil imports increased 32 percent  to 501,000 tonnes, the highest in seven months, while sunflower oil shipments rose 4 percent to 253,000 tonnes.

Refiners Rebuild Stocks Ahead Of Festival Demand

The increase in imports comes amid declining domestic stocks following lower purchases in recent months. Refiners are now rebuilding inventories ahead of the festival season, when edible oil consumption typically rises.

India is expected to witness a series of major festivals between August and November, supporting demand for edible oils, reported Reuters.

Soyoil Imports May Stay Above 500,000 Tonnes

Sandeep Bajoria, CEO of Mumbai-based vegetable oil brokerage Sunvin Group, said refiners were replenishing stocks to meet the expected seasonal demand.

Rajesh Patel, managing partner at Rajkot-based GGN Research, said soyoil imports could exceed 500,000 tonnes in both August and September, supported by competitive international prices.

He attributed the higher import demand to lower domestic crushing of rapeseed and soybeans.

India Sources Edible Oils From Global Suppliers

India primarily imports palm oil from Indonesia and Malaysia, while soyoil and sunflower oil are sourced mainly from Argentina, Brazil, Russia and Ukraine.

The estimates exclude duty-free edible oil shipments entering India by land from neighbouring Nepal. The Solvent Extractors' Association of India is expected to release official July import data by mid-August.

Higher Indian Purchases May Support Global Edible Oil Markets

Higher Indian purchases could support global edible oil markets by helping major producers such as Indonesia, Malaysia and Argentina reduce inventories and potentially supporting benchmark palm oil and soyoil futures.

(KNN Bureau)