Palm Oil Imports May Jump In Indian On Lower Prices

KUALA LUMPUR:A senior industry official told Reuters on Tuesday that India’s palm oil imports could rise 16% in 2022/23 to a four-year high of 9.17 million tonnes due to rising consumption after two years of contraction due to COVID-led lockdowns.

Palm oil futures, which are trading close to their highest level in four months, could receive additional support from increased purchases by the world’s largest importer of vegetable oils. The pandemic led to a two-year decline in consumption.

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According to Sudhakar Desai, president of the Indian Vegetable Oil Producers’ Association, “as restrictions have eased and prices have fallen, it would rebound by about 5% this year.”

He stated that increased imports of palm oil, which has been trading at a discount to compete with soy oil and sunflower oil, would satisfy the expansion in consumption.

According to estimates from traders, India’s imports of palm oil during the first four months of the 2022/23 marketing year, which began on November 1, increased by 74% from a year earlier to 3.67 million tonnes.