India’s Edible Oil Imports reach record high in July

New Delhi, 2nd August 2023: India’s edible oil imports increased to a record 1.76 million metric tonnes in July as refiners stocked up stocks for approaching festivals due to uncertainties about supplies from the Black Sea.

Increased purchases by the world’s largest vegetable oil importer should assist to reduce palm oil stocks in Indonesia and Malaysia, supporting benchmark contracts.

A report in MoneyControl states that this would also enhance soy-oil futures and potentially cut stockpiles in Black Sea countries that produce sunflower oil.

According to the Solvent Extractors’ Association of India (SEA), India’s average monthly edible oil imports in the 2021/22 marketing year were 1.17 million tonnes. India imported 1.3 million tonnes of edible oils in June.

According to average dealer estimates, palm oil imports jumped from 683,133 tonnes in June to 1.09 million tonnes in July, the highest level in seven months.

Palm oil’s price advantage over soy-oil and sun-oil has grown, prompting refiners to increase procurement for future festivals, according to Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil trading and advisory firm.

Due to the Russia-Ukraine situation, importers are stockpiling large amounts of oil to assure adequate supply and avoid any shortages, according to Rajesh Patel, managing partner of GGN Research, an edible oil trader and broker.

Sunflower oil imports increased 73% month on month to 330,000 tonnes, the highest level in six months, while soy-oil imports declined 22% to 340,000 tonnes.

India mostly imports palm oil from Indonesia, Malaysia, and Thailand, whereas Argentina, Brazil, Russia, and Ukraine import soy-oil and sunflower oil.