India's edible oil imports hit 10-month peak in July on higher palm buying, dealers say

MUMBAI: India’s edible oil imports climbed to their highest level in 10 months in July as refiners increased purchases of palm oil and soyoil to replenish inventories ahead of the festival season amid tightening domestic supplies, five dealers said.

Higher palm oil and soyoil buying by the world’s biggest importer of vegetable oils could help top producers Indonesia, Malaysia and Argentina in bringing down stocks and support benchmark palm oil and soyoil futures.

Palm oil imports jumped 50% from a month ago to 733,000 metric tons in July, the highest in five months, dealers’ average estimates showed.

Soyoil imports rose 32% month-on-month in July to 501,000 tons, the highest in seven months, while sunflower oil shipments edged higher by 4% to 253,000 tons.

India’s edible oil imports surged 34% from June to a 10-month high of 1.49 million tons in July, driven by higher imports of all three major edible oils, estimates showed.

The figures exclude duty-free shipments arriving via land from neighbouring Nepal, the dealers said.

The Solvent Extractors’ Association of India is due to publish July import data by mid-August.

Stocks have declined after lower imports over the past few months, but refiners are now rebuilding inventories to meet demand during the upcoming festival season, said Mumbai-based Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage.

India will celebrate a series of festivals between August and November, when demand for edible oils typically peaks.

Soyoil imports are likely to be more than 500,000 metric tons in both August and September since prices are very competitive, said Rajesh Patel, managing partner at trader GGN Research in the city of Rajkot in the western state of Gujarat.

“Lower domestic crushing of rapeseed and soybeans is boosting demand for imports,” Patel said.

India sources most of its palm oil from Indonesia and Malaysia, while soyoil and sunflower oil are imported mainly from Argentina, Brazil, Russia and Ukraine.