Record palm oil imports in India boost edible oil market and reduce global stocks
India's palm oil imports are expected to jump 26% to a record in the 2022/23 year ending October 31, as recovering consumption and competitive prices prompt refiners to increase purchases, the major told Reuters. buyer of the country's palm oil this Wednesday.
Increased purchases by the world's largest importer of palm oil, therefore, could help reduce inventories in Indonesia and Malaysia, which are the largest producers, and support benchmark futures.
“Refineries are increasing their purchases for the upcoming festivals. Hence, we could see imports of around 1.8 million tonnes in the next two months,” said Sanjeev Asthana, CEO, Patanjali Foods Ltd.
If India imports 1.8 million tonnes in the next two months, the total shipments for 2022/23 will be 10 million tonnes. This surpasses the previous high of 9.5 million in 2014/15, according to Asthana.
In the first 10 months of 2022/23, India imported 14 million tonnes of edible oils. This includes 8.2 million tonnes of palm oil, 3.2 million tonnes of soybean oil and 2.5 million tonnes of sunflower oil, according to traders' estimates.
Edible oil consumption in India has been subdued over the past three years, with record prices weighing on usage in 2022 and Covid-19 in the previous two years, however, he said.
“We expect growth of 2% to 4% in consumption this year,” furthermore, he said.
Challenge in the balance of edible oils: India increases imports amid the resumption of consumption
India meets more than two-thirds of its edible oil needs through imports.
Resumption of consumption boosts sunflower oil imports, raising edible oil imports by 18% to a record 16.5 million tonnes, Rajesh Patel, GGN Research.
Sunflower oil imports are expected to rise by 44%, totaling 2.8 million tons. This is due to its greater savings compared to soybean oil. However, imports of the latter are expected to fall by 11% to 3.7 million from the previous year's record of 4.1 million.
India sources palm oil from Indonesia, Malaysia and Thailand, while imports soybean and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Source: Rajendra Jadhav | Notícias Agrícolas
