India's palm oil imports fell to their lowest level in nine months in February as higher prices prompted buyers to reduce purchases of the tropical oil in favor of the competitor. Sunflower oil, a leading trade body said on Wednesday.
Reduced purchases by India, the world's biggest importer of vegetable oils, may limit the recovery in Malaysian palm oil futures but will help reduce sunflower oil stocks in the Black Sea region.
In February, palm oil imports fell by 36%, totaling 497,824 tonnes, the lowest volume since May 2023, according to the statement.
“The availability of palm oil for edible oil needs has declined as the two main producers, Malaysia and Indonesia, are diverting it to biodiesel production. This could result in an increase in prices this year,” SEA said.
On the other hand, sunflower oil imports increased by around 35% to 297,092 tons. This due to lower prices and delays due to Houthi attacks affected shipments, arriving in February instead of January, SEA said.
Drop in oil imports leads to lowest stockpile in 18 months in India
Soybean oil imports in February fell 8% to 172,936 tonnes, far below the annual average of 306,000 tonnes. Palm oil imports fell in India, bringing total imports down to 0.97 million tonnes, the lowest level in two years. Stocks fell to 2.38 million tonnes on March 1, the lowest level in 18 months, due to reduced imports.
New Delhi trader predicts an increase in imports in March due to the replenishment of stocks and improvements in refinery margins.
Source: Rajendra Jadhav and Swati Verma | Notícias Agrícolas
