India's soyoil imports touch record high: What's the reason?
What's the story
India's edible oil imports surged in August, with soyoil hitting a record 601,000 tons and palm oil reaching a six-month high. The spike is attributed to refiners stocking up ahead of the festive season. According to five dealers, this increase in palm and soyoil purchases by India could help major producers like Indonesia, Malaysia, and Argentina reduce their stocks while supporting benchmark prices for these oils.
Import statistics
Palm oil imports rose by 7% month-on-month
India's palm oil imports rose by 7% month-on-month to 780,000 metric tons in August, dealers' average estimates showed.
Soyoil imports also saw a significant jump of 21% month-on-month, reaching a record high of 601,000 tons.
However, sunflower oil shipments witnessed a decline of 38%, hitting a six-month low at 157,000 tons.
Import surge
Overall edible oil imports rose to an 11-month high
Overall edible oil imports rose by 4% to an 11-month high of 1.54 million tons, mainly due to increased shipments of palm and soyoil.
The figures do not include duty-free land imports from neighboring Nepal.
About 100,000 tons of edible oils, including some 90,000 tons of soyoil, were imported from Nepal in August according to the dealers' estimates.
Market dynamics
Refiners have increased purchases to meet festive demand
Rajesh Patel, managing partner at trader GGN Research in Gujarat, said refiners have increased purchases to meet festive demand.
He also noted that nearby deliveries were cheaper than shipments for later months.
India celebrates a series of festivals between August and November when the demand for edible oils usually peaks.