Palm oil imports at 10-month low after high prices

Mumbai: The country’s palm oil imports fell to a 10-month low in March. Due to high prices, importers increased purchases of sunflower oil instead of palm oil. Due to which an increase of fifty percent has been seen in its imports. Sunflower oil imports in March were the second-highest on record, data from the Solvent Extractors Association of India (CISA) showed.

While India is a major importer of vegetable oil, a decline in palm oil imports could see a decline in Malaysian palm oil futures.

Market circles said the increase in sunflower oil purchases will help reduce sunflower oil reserves in the Rata Samudra region.

A statement issued by the MC said palm oil imports declined by 2.50 per cent to 485,354 tonnes in March compared to February, the lowest since May 2023.

Sena sources said palm oil prices have increased due to reduced production in palm oil producing countries, forcing Indian importers to switch to sunflower oil imports.

Sunflower oil imports rose 50 percent last month to 445,723 tonnes, the second highest ever.

In the world market, the price of crude palm oil for May delivery is being quoted at $ 1040 per tonne and the price of sunflower oil is being quoted at $ 975 per tonne. Sina sources also said that the price of soybean oil is being considered at $1015 per tonne.

India’s edible oil imports reached a six-month high of 11.49 lakh tonnes in March, up 18.80 per cent from February, due to higher imports of sunflower and soya oil.

Indonesia, Thailand and Malaysia are major suppliers of palm oil while sunflower oil is mainly imported from Ukraine, Brazil, Russia and Argentina.