India's June vegetable oil imports to hit highest level since November

India's vegetable oil imports may have risen 28 percent in June to their highest level since November as local supplies remain poor, with expectations buying will be buoyant again next month ahead of key festival feasts, a Reuters survey showed.
Domestic oilseed stocks are declining and the new crop is only just being planted, while buyers are looking ahead to India's festival season which runs from August to October and usually includes celebratory meals. Palm oil imports, the bulk of India's cooking purchases, could have risen by a third in June over the previous month, according to the survey of eight traders, while soyaoil purchases are likely to be static as its premium over palm oil widened.
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. An expected supply shortfall in Latin America has widened cash premiums of soyaoil over palm oil to about $115 per tonne currently from about $10 a year ago, shifting India's imports back towards the cheaper oil. India's import requirements can influence palm oil futures on the exchange in Malaysia, the world's No 2 producer.
By midday on Tuesday, the benchmark September crude palm oil contract on Bursa Malaysia had fallen 1.2 percent to 3,036 ringgit ($1,008.6) per tonne. India's vegetable oil imports, including non-edible oils, are estimated to have risen 16 percent in June from a year ago to 847,500 tonnes on costlier local supply, the average of forecasts in the survey showed.
Domestic cooking oil prices range around $1,230-$1,1,442 per tonne as against imported oils that are $1,150-1,325 per tonne, though these differentials could narrow. In May, India imported 664,133 tonnes of vegetable oils. "India's overseas buying interest in cooking oils will be alive in July to meet demand of the holy Muslim month of Ramadan in August," said Jyoti Kanda, a trader based in the western state of Rajasthan.
During Ramadan, many in the Muslim community celebrate the end of the daily fast with meals high in cooked and fried foods. Higher imports also pushed stocks of imported edible oils at Indian ports up 27 percent to 513,000 tonnes at the end of June in comparison with the previous month, the survey suggested.