India's Palm Oil Imports Decline Sharply Amid Negative Margins

India's palm oil imports plunged 27% in August due to ample stocks and negative margins, influencing refiners to curb purchases. This decline could boost palm oil inventories in Indonesia and Malaysia, affecting futures prices. Concurrently, imports of soyoil surged, and sunflower oil imports also fell, lowering India's total edible oil imports.

India's palm oil imports saw a significant decline of 27% in August, driven by ample inventories and negative refining margins, according to industry sources. This reduction in purchases by the world's largest vegetable oil importer could lead to higher stock levels in key producing countries such as Indonesia and Malaysia, potentially impacting benchmark futures prices.

In comparison, soyoil imports increased by 16% to 456,000 metric tons, the highest in over two years, as refiners turned to more cost-effective alternatives following a rise in local rapeseed oil prices. Sunflower oil imports also fell by 21% to 288,000 metric tons, further contributing to a 17% decrease in India's total edible oil imports for the month.

As domestic farmers struggle with depressed oilseed prices, India is weighing the possibility of raising import taxes on vegetable oils. The Solvent Extractors' Association of India (SEA) is expected to release official data on August imports by mid-September.

(With inputs from agencies.)