Palm oil imports expected to fall by 27 percent in August

04-Sep-2024 01:04 PM

Mumbai. Industry and trade analysts have estimated a 27 percent fall in palm oil imports in the country during the month of August as its demand weakened due to its high global market price.

According to experts, the reduction in imports in India, the world's largest importer of edible oils, will increase the outstanding surplus stock of palm oil in both the major producer and exporter countries - Indonesia and Malaysia, and its benchmark futures price will soften.

According to industry analysts, a very large import of palm oil was made in July, sufficient stock of which was present in August as well, so when its price rose in the exporting countries, Indian importers lost interest in buying it.

Refiners feared negative margins on the import of crude palm oil. According to a leading analyst, much more palm oil was imported in July than the domestic demand and requirement, so refiners had to reduce its imports in August.

According to dealers, the total import of palm oil is expected to shrink to 7.91 lakh tonnes in August. Due to the rise in prices, palm oil also became expensive like soybean oil. Usually, the price of palm oil remains below soybean oil and sunflower oil.

But at present, the price of these edible oils remains below these edible oils and sunflower oil for September shipment.

But at present, the export offer price of these edible oils for September shipment is almost equal. This shows that there will be no significant increase in the import of palm oil even during the current month.

On the other hand, the import of soybean oil is expected to increase by 16 percent to 4.56 lakh tonnes during the month of August as compared to July, which is the highest level in about two years.

But the import of sunflower oil is expected to shrink to 2.88 lakh tonnes in August with a decline of 21 percent.

In fact, the domestic market price of mustard oil increased by about 8 percent in August. This helped some refiners to adulterate mustard oil with soybean oil and hence the import of soy oil increased.

Solvent Extractors Association of India (SI), an apex body of the vegetable oil industry, is likely to release its monthly report in mid-September.