Palm oil imports expected to jump 45 percent to 11.4 lakh tonnes in July
24-Jul-2024 03:12 PM
Mumbai. Indian importers have been reported to have contracted record quantities of edible oils for July delivery. Under this, Indian refiners have increased the purchase of palm oil and soybean oil significantly because on one hand the price of these oils was running at an attractive level and secondly, importers feared that the Union may announce an increase in import duty on edible oils in the general budget.
But import duty was not increased in the budget. According to the average estimated data of industry-trade sector reviewers-analysts, the total import of edible oils in the country during July 2024 may jump by about 26 percent as compared to June to an all-time high of 19.20 lakh tonnes, whereas in the current marketing season from November 2023 to June 2024,
the average monthly import of edible oils was recorded at only 12 lakh tonnes. The current marketing season will continue till October 2024. According to informed sources, about 14.50 lakh tonnes of imported edible oils have been discharged from various ports of the country in the current month by giving clearance,
which also includes a consignment of 8.50 lakh tonnes of palm oil. According to dealers, during July 2024, as compared to June,
the import of crude and refined edible oils of the palm category in the country is estimated to reach a high of 11.40 lakh tonnes with a strong increase of about 45 percent, which is the highest in the last 20 months.
In fact, due to the fall in the prices of palm oil in May and June, it became cheaper than rival oils, while during this period the refining margin in India will also be better, which will give refiners the opportunity and encouragement to purchase huge quantities of palm oil and soybean oil for July delivery.
It is worth noting that in April there was a price difference of only $ 10 per tonne between palm oil and soybean oil, but in May it jumped to more than $ 100 per tonne. This means that the price of soybean oil became more than $100 per tonne higher than palm oil.