India's Plummeting Palm Oil Imports Spark Global Market Repercussions

India's palm oil imports dropped by over 33% in September due to higher prices, reaching a six-month low. Soyoil and sunflower oil imports also saw significant declines. The reduced imports are impacting global stocks and market prices, while India's festive season may drive import increases in October.

India's palm oil imports saw a significant decrease in September, falling by over 33% to a six-month low due to high prices, according to the Solvent Extractors' Association of India (SEA). This decline could potentially increase stock levels in leading producers Indonesia and Malaysia, affecting global benchmark futures.

Soyoil imports dropped by 15.4% and sunflower oil imports reached a ten-month low with a 46.2% decline, resulting in a total vegetable oil import reduction of over 30% to 1.1 million tons. This contraction has caused a decrease in domestic vegetable oil stocks to 2.45 million tons from 2.93 million tons in the previous month.

Despite the decline, the ongoing festival season in India is boosting edible oil demand, which might reverse the trend and push palm oil imports above 700,000 tons in October, as noted by a New Delhi-based trade dealer.

(With inputs from agencies.)