India's October Palm Oil Import Surge: A Festive Demand Fuelled Boost

India's palm oil imports increased by 59% in October, reaching a three-month peak, in response to strong festive demand and depleted stocks. The surge may reduce stocks in top producers like Indonesia and Malaysia, buoying futures. Overall, India saw a 34% increase in edible oil imports last month.

In October, India's palm oil imports soared by 59%, hitting a three-month high as refiners responded to depleted stocks and festive demand. This buying spree by the world's top vegetable oil importer might pressure palm oil inventories in major producers Indonesia and Malaysia, potentially propping up future prices.

The country's edible oil imports surged by 34% to 1.42 million tons, driven by India's festival season and competitive palm oil prices back in August, when orders were placed. The import hike is expected to have a ripple effect in the vegetable oil market globally.

While palm oil imports increased, soyoil saw a 10% reduction. However, sunflower oil imports experienced a 57% jump due to delayed shipments arriving in October. India's main sources for these imports include Indonesia, Malaysia, Thailand, Argentina, Brazil, Russia, and Ukraine. The Solvent Extractors' Association of India is anticipated to release more detailed data by mid-November.

(With inputs from agencies.)