India's vegetable oil imports fell by 18 percent in March as a big rapeseed harvest improved domestic supplies, a Reuters survey showed, and the trend should continue next month, putting downward pressure on international prices. Palm oil imports are expected to have fallen 20 percent in March over the previous month, according to the survey of eight traders, while soyaoil imports could fallen 46 percent - the first decline in four months.
In India, soyaoil demand rises in the winter season as demand for rival palm, a tropical oil, slows down because it solidifies at lower temperatures and becomes difficult to use. India, the world's top vegetable oil importer, buys mainly palm oils from Indonesia and Malaysia, and small quantities of soyaoil from Argentina and Brazil.
"Imports fell as domestic prices were cheaper due to a bumper rapeseed harvest," said Sandeep Bajoria, chief executive of the Mumbai-based trading firm Sunvin Group. India's vegetable oil imports, including non-edible oils, are estimated to have fallen 29 percent in March from a year ago to 449,250 tonnes, the average of forecasts in the survey showed.
The fall in month-on-month imports should continue as local supplies will be higher in Aprilsaid R.K. Singhal, a New Delhi-based trade analyst. Vegetable oil prices are currently climbing along with crude as they can be used as alternatives in the energy sector. Benchmark Malaysian palm oil prices hit over three-week highs on Monday.
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