India's edible oil imports decreased by 30 per cent in June, compared to the month before, due to a drastic drop in shipments of palm oil and soybean oil. This indicates that refiners made fewer purchases due to high domestic stocks and fluctuating global prices.
India's edible oil imports amounted to approximately 898,000 tons, which is lower than the 1.28 million tons recorded in May, as per the information made available by the industry on Monday. India is the world's largest edible oil importing nation and sources most of the palm oil it needs from Malaysia and Indonesia, while soybean and sunflower oils are imported from Brazil, Argentina, Belarus, and Ukraine.
Palm Oil Leads Decline
Palm oil shipments suffered the most significant drop throughout the period, falling by over 40 per cent to around 423,000 tonnes. This reduction occurred after refiners increased the quantity purchased in the last few months, resulting in a lower need for new imports in the month of June.
Sources in the market also attribute the situation to the changes in prices. Indeed, palm oil prices lost their advantage in comparison with other oils, which led the buyers to be more careful in their purchases, postponing new orders.
Palm oil is the most popular cooking oil in India due to its accessible price and wide usage at home, in restaurants, and in the food industry. Hence, the variability in palm oil imports strongly influences the domestic edible oil consumption as well as prices.
Soybean Oil Buying Eases
Imports of soybean oil decreased in the month, dropping to about 316,000 tonnes versus the levels in May because refiners cut back on buying due to the adequate domestic supply and fluctuations overseas in the prices. On the other hand, sunflower oil imports remained stable, which somewhat made up for the drop in edible oil imports overall. India relies on imports for over half of its edible oil needs, and hence global production, pricing set and logistics play an important role in domestic supply. |
