MUMBAI – India’s palm oil imports increased 20.6 percent month on month in September, the first increase in four months, as the rupee recovered, encouraging refiners to buy more for the peak festival season.

According to the Solvent Extractors’ Association (SEA), India, the world’s largest buyer of palm oil, imported 644,386 tonnes in September.

This included 167,601 tonnes of refined palm oil imports. The SEA warned of a refining industry crisis brewing as a result of the growing trend of buying refined oils from abroad.

Importers benefited from the rupee’s 5 percent rally in September, which ended a four-month losing streak.

Palm oil accounts for roughly 80% of total cooking oil imports into India. The majority of it is from Malaysia and Indonesia. India imports approximately 60% of its annual vegetable oil demand of 17-18 million tonnes.

Total vegetable oil imports increased 14 percent from the previous month to 863,917 tonnes, according to the SEA.

Due to Hindu festivals such as Dussehra and Diwali, which often coincide with family gatherings for feasts, India’s demand for edible oils typically increases in the December quarter.

According to Reuters, average vegetable oil imports in September were expected to be 881,000 tonnes, including 614,000 tonnes of palm oil.

According to B.V. Mehta, executive director of the SEA, India’s vegetable oil imports in October are likely to be 800,000 to 900,000 tonnes, down from 1 million tonnes during the same period last year, as soybean supplies began from the new season crop.

“As a result of early sowing, soybean supplies have already begun.” “Oil mills are crushing new season crop, limiting imports in October,” he said.

Soybean is the country’s main summer-sown oilseed crop, and harvesting has begun in key growing areas, despite recent heavy rains.

Info source – MPOC